10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

Quarterly Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2024 Commission File Number 001-18761

MONSTER BEVERAGE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	47-1809393
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

1 Monster Way

Corona, California 92879

(Address of principal executive offices) (Zip code)

(951) 739 - 6200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	MNST	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  X    No __

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes  X    No __

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes __    No X

The registrant had 1,041,728,228 shares of common stock, par value $0.005 per share, outstanding as of April 26, 2024.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

MARCH 31, 2024

INDEX

Part I.	FINANCIAL INFORMATION	Page No.
Item 1.	Condensed Consolidated Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023	3
	Condensed Consolidated Statements of Income for the Three-Months Ended March 31, 2024 and 2023	4
	Condensed Consolidated Statements of Comprehensive Income for the Three-Months Ended March 31, 2024 and 2023	5
	Condensed Consolidated Statements of Stockholders’ Equity for the Three-Months Ended March 31, 2024 and 2023	6
	Condensed Consolidated Statements of Cash Flows for the Three-Months Ended March 31, 2024 and 2023	7
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	44
Item 4.	Controls and Procedures	44
Part II.	OTHER INFORMATION
Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3.	Defaults Upon Senior Securities	46
Item 4.	Mine Safety Disclosures	46
Item 5.	Other Information	46
Item 6.	Exhibits	46
	Signatures	47

2

PART I – FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2024 AND DECEMBER 31, 2023

(In Thousands, Except Par Value) (Unaudited)

	March 31,		December 31,
	2024		2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	2,576,524	$	2,297,675
Short-term investments		984,201		955,605
Accounts receivable, net		1,370,239		1,193,964
Inventories		939,630		971,406
Prepaid expenses and other current assets		124,580		116,195
Prepaid income taxes		40,340		54,151
Total current assets		6,035,514		5,588,996
INVESTMENTS		8,162		76,431
PROPERTY AND EQUIPMENT, net		923,290		890,796
DEFERRED INCOME TAXES, net		175,271		175,003
GOODWILL		1,417,941		1,417,941
OTHER INTANGIBLE ASSETS, net		1,430,762		1,427,139
OTHER ASSETS		107,126		110,216
Total Assets	$	10,098,066	$	9,686,522
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	533,729	$	564,379
Accrued liabilities		204,679		183,988
Accrued promotional allowances		318,895		269,061
Deferred revenue		43,776		41,914
Accrued compensation		52,638		87,392
Income taxes payable		75,111		14,955
Total current liabilities		1,228,828		1,161,689
DEFERRED REVENUE		198,759		204,251
OTHER LIABILITIES		92,690		91,838
COMMITMENTS AND CONTINGENCIES (Note 11)
STOCKHOLDERS’ EQUITY:
Common stock - $0.005 par value; 5,000,000 shares authorized; 1,124,870 shares issued and 1,041,698 shares outstanding as of March 31, 2024; 1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023		5,624		5,613
Additional paid-in capital		5,034,948		4,975,115
Retained earnings		6,381,785		5,939,736
Accumulated other comprehensive loss		(157,940)		(125,337)
Common stock in treasury, at cost; 83,172 shares and 81,021 shares as of March 31, 2024 and December 31, 2023, respectively		(2,686,628)		(2,566,383)
Total stockholders’ equity		8,577,789		8,228,744
Total Liabilities and Stockholders’ Equity	$	10,098,066	$	9,686,522

See accompanying notes to condensed consolidated financial statements.

3

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE-MONTHS ENDED MARCH 31, 2024 AND 2023

(In Thousands, Except Per Share Amounts) (Unaudited)

	Three-Months Ended
	March 31,
	2024		2023
NET SALES	$	1,899,098	$	1,698,930
COST OF SALES		871,969		801,081
GROSS PROFIT		1,027,129		897,849
OPERATING EXPENSES		485,138		412,785
OPERATING INCOME		541,991		485,064
INTEREST and OTHER INCOME, net		35,754		12,496
INCOME BEFORE PROVISION FOR INCOME TAXES		577,745		497,560
PROVISION FOR INCOME TAXES		135,696		100,116
NET INCOME	$	442,049	$	397,444
NET INCOME PER COMMON SHARE:
Basic	$	0.42	$	0.38
Diluted	$	0.42	$	0.38
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:
Basic		1,041,081		1,044,909
Diluted		1,051,282		1,059,069

See accompanying notes to condensed consolidated financial statements.

4

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTHS ENDED MARCH 31, 2024 AND 2023

(In Thousands) (Unaudited)

	Three-Months Ended
	March 31,
	2024		2023
Net income, as reported	$	442,049	$	397,444
Other comprehensive income (loss):
Change in foreign currency translation adjustment		(30,695)		7,981
Change in net unrealized gain (loss) on available-for-sale investments		223		3,181
Change in net gain (loss) on commodity derivatives		(2,131)		—
Other comprehensive income (loss)		(32,603)		11,162
Comprehensive income	$	409,446	$	408,606

See accompanying notes to condensed consolidated financial statements.

5

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE-MONTHS ENDED MARCH 31, 2024 AND 2023

(In Thousands) (Unaudited)

								Accumulated Other					Total
	Common stock			Additional		Retained		Comprehensive (Loss)		Treasury stock			Stockholders’
	Shares	Amount		Paid-in Capital		Earnings		Income		Shares	Amount		Equity
Balance, December 31, 2023	1,122,592	$	5,613	$	4,975,115	$	5,939,736	$	(125,337)	(81,021)	$	(2,566,383)	$	8,228,744
Stock-based compensation	—		—		21,452		—		—	—		—		21,452
Stock options/awards	2,278		11		38,381		—		—	—		—		38,392
Unrealized gain (loss), net on available-for-sale securities	—		—		—		—		223	—		—		223
Repurchase of common stock	—		—		—		—		—	(2,151)		(120,245)		(120,245)
Foreign currency translation	—		—		—		—		(30,695)	—		—		(30,695)
Net gain (loss) on commodity derivatives	—		—		—		—		(2,131)	—		—		(2,131)
Net income	—		—		—		442,049		—	—		—		442,049
Balance, March 31, 2024	1,124,870	$	5,624	$	5,034,948	$	6,381,785	$	(157,940)	(83,172)	$	(2,686,628)	$	8,577,789

								Accumulated Other					Total
	Common stock			Additional		Retained		Comprehensive (Loss)		Treasury stock			Stockholders’
	Shares	Amount		Paid-in Capital		Earnings		Income		Shares	Amount		Equity
Balance, December 31, 2022	1,283,688	$	6,418	$	4,776,804	$	9,001,173	$	(159,073)	(239,088)	$	(6,600,281)	$	7,025,041
Stock-based compensation	—		—		15,743		—		—	—		—		15,743
Stock options/awards	3,704		19		36,329		—		—	—		—		36,348
Unrealized gain (loss), net on available-for-sale securities	—		—		—		—		3,181	—		—		3,181
Repurchase of common stock	—		—		—		—		—	(1,688)		(90,378)		(90,378)
Retirement of treasury stock	(170,000)		(850)		425		(4,692,425)		—	170,000		4,692,850		—
Foreign currency translation	—		—		—		—		7,981	—		—		7,981
Net income	—		—		—		397,444		—	—		—		397,444
Balance, March 31, 2023	1,117,392	$	5,587	$	4,829,301	$	4,706,192	$	(147,911)	(70,776)	$	(1,997,809)	$	7,395,360

See accompanying notes to condensed consolidated financial statements.

6

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTHS ENDED MARCH 31, 2024 AND 2023

(In Thousands) (Unaudited)

	Three-Months Ended
	March 31,
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	442,049	$	397,444
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		20,475		16,808
Non-cash lease expense		3,185		2,160
Gain on disposal of property and equipment		(177)		(385)
Stock-based compensation		22,472		16,051
Deferred income taxes		9		—
Effect on cash of changes in operating assets and liabilities:
Accounts receivable		(195,081)		(167,512)
Inventories		22,708		35,495
Prepaid expenses and other assets		(9,507)		1,273
Prepaid income taxes		11,840		3,986
Accounts payable		(9,062)		51,124
Accrued liabilities		28,259		14,207
Accrued promotional allowances		52,814		48,265
Accrued compensation		(35,653)		(30,261)
Income taxes payable		60,512		41,617
Other liabilities		335		(751)
Deferred revenue		(3,036)		(5,046)
Net cash provided by operating activities		412,142		424,475
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of available-for-sale investments		382,125		522,501
Purchases of available-for-sale investments		(342,228)		(518,751)
Purchases of property and equipment		(66,044)		(40,100)
Proceeds from sale of property and equipment		422		564
Additions to intangibles		(8,612)		(3,952)
Increase in other assets		(985)		(13,028)
Net cash used in investing activities		(35,322)		(52,766)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on debt		(2,896)		(7,271)
Issuance of common stock		38,392		36,348
Purchases of common stock held in treasury		(120,245)		(35,126)
Net cash used in financing activities		(84,749)		(6,049)
Effect of exchange rate changes on cash and cash equivalents		(13,222)		(141)
NET INCREASE IN CASH AND CASH EQUIVALENTS		278,849		365,519
CASH AND CASH EQUIVALENTS, beginning of period		2,297,675		1,307,141
CASH AND CASH EQUIVALENTS, end of period	$	2,576,524	$	1,672,660
SUPPLEMENTAL INFORMATION:
Cash paid during the period for:
Interest	$	91	$	96
Income taxes	$	63,634	$	56,985

See accompanying notes to condensed consolidated financial statements.

7

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTHS ENDED MARCH 31, 2024 AND 2023

(In Thousands) (Unaudited) (Continued)

SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS

Included in accrued liabilities as of March 31, 2024 and 2023 were $11.7 million and $9.6 million, respectively, related to net additions to other intangible assets.

Included in accounts payable as of March 31, 2024 and 2023 were $3.2 million and $2.5 million, respectively, related to equipment purchases.

Included in accounts receivable as of March 31, 2024 was $3.0 million related to available-for-sale short-term investment sales.

Included in accrued liabilities as of March 31, 2023 was $55.3 million of withholding taxes due related to common stock purchased from employees.

See accompanying notes to condensed consolidated financial statements.

8

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

1. BASIS OF PRESENTATION

Reference is made to the Notes to Consolidated Financial Statements, in Monster Beverage Corporation and Subsidiaries (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2023 for a summary of significant accounting policies utilized by the Company and its consolidated subsidiaries and other disclosures, which should be read in conjunction with this Quarterly Report on Form 10-Q (“Form 10-Q”).

The Company’s condensed consolidated financial statements included in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) rules and regulations applicable to interim financial reporting. They do not include all the information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP. The information set forth in these interim condensed consolidated financial statements for the three-months ended March 31, 2024 and 2023, respectively, is unaudited and reflects all adjustments, which include only normal recurring adjustments and which in the opinion of management are necessary to make the interim condensed consolidated financial statements not misleading. Results of operations for periods covered by this report may not necessarily be indicative of results of operations for the full year.

The preparation of financial statements in conformity with GAAP necessarily requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

Recent Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU No. 2023-07 are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact ASU No. 2023-07 will have on its consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update primarily require more detailed disclosures related to the rate reconciliation and income taxes paid. The amendments in ASU No. 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact ASU No. 2023-09 will have on its consolidated financial statements.

2. REVENUE RECOGNITION

Revenues are accounted for in accordance with FASB Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as the Company’s affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment (“Alcohol Brands”), which is comprised of various craft beers, hard seltzers and flavored malt beverages (“FMBs”) and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors, LLC, a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).

The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers and full service beverage distributors (“bottlers/distributors”). In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

9

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors.

The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, hard seltzers and FMBs primarily to beer distributors in the United States.

The majority of the Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products to a customer. Control is generally transferred when the Company’s products are either shipped or delivered based on the terms contained within the underlying contracts or agreements. Certain of the Company’s bottlers/distributors may also perform a separate function as a co-packer on the Company’s behalf. In such cases, control of the Company’s products passes to such bottlers/distributors when they notify the Company that they have taken possession or transferred the relevant portion of the Company’s finished goods. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations as of March 31, 2024 and December 31, 2023.

The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers.

Distribution expenses to transport the Company’s products, where applicable, and warehousing expenses after manufacture are accounted for within operating expenses.

Promotional and other allowances (variable consideration) recorded as a reduction to net sales for the Company’s energy drink products primarily include consideration given to the Company’s non-alcohol bottlers/distributors or retail customers, including, but not limited to, the following:

● discounts granted off list prices to support price promotions to end-consumers by retailers;

● reimbursements given to the Company’s bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products;

● the Company’s agreed share of fees given to bottlers/distributors and/or directly to retailers for advertising, in-store marketing and promotional activities;

● the Company’s agreed share of slotting, shelf space allowances and other fees given directly to retailers, club stores and/or wholesalers;

● incentives given to the Company’s bottlers/distributors and/or retailers for achieving or exceeding certain predetermined sales goals;

● discounted or free products;

● contractual fees given to the Company’s bottlers/distributors related to sales made directly by the Company to certain customers that fall within the bottlers’/distributors’ sales territories; and

● commissions to TCCC based on the Company’s sales to wholly-owned subsidiaries of TCCC (the “TCCC Subsidiaries”) and/or to TCCC bottlers/distributors accounted for under the equity method by TCCC (the “TCCC Related Parties”).

The Company’s promotional allowance programs for its energy drink products are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, typically ranging from one week to one year. The Company’s promotional and other allowances for its energy drink products are calculated based on various programs with bottlers/distributors and retail customers, and accruals are established at the time of initial product sale for the Company’s anticipated liabilities. These accruals are based on agreed upon terms as well as the Company’s historical experience with similar programs and require management’s judgment with respect to estimating consumer participation and/or bottler/distributor and retail customer performance levels. Differences between such estimated expenses and actual

10

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.

Amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors relating to the costs associated with terminating the Company’s prior distributors, are accounted for as deferred revenue and recognized as revenue ratably over the anticipated life of the respective distribution agreements, generally over 20 years.

The Company also enters into license agreements that generate revenues associated with third-party sales of non-beverage products bearing the Company’s trademarks including, but not limited to, clothing, hats, t-shirts, jackets, helmets and automotive wheels.

Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company’s historical experience.

Disaggregation of Revenue

The following tables disaggregate the Company’s revenue by geographical markets and reportable segments:

	Three-Months Ended March 31, 2024
							Latin
					Asia Pacific		America
	U.S. and				(including		and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	1,094,846	$	352,229	$	122,018	$	159,958	$	1,729,051
Strategic Brands		49,642		43,337		9,197		6,268		108,444
Alcohol Brands		56,070		—		—		—		56,070
Other		5,533		—		—		—		5,533
Total Net Sales	$	1,206,091	$	395,566	$	131,215	$	166,226	$	1,899,098

	Three-Months Ended March 31, 2023
							Latin
					Asia Pacific		America
	U.S. and				(including		and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	1,021,328	$	277,111	$	121,994	$	141,235	$	1,561,668
Strategic Brands		43,043		30,951		8,983		3,381		86,358
Alcohol Brands		46,290		—		—		—		46,290
Other		4,614		—		—		—		4,614
Total Net Sales	$	1,115,275	$	308,062	$	130,977	$	144,616	$	1,698,930

¹Europe, Middle East and Africa (“EMEA”)

Contract Liabilities

Amounts received from certain bottlers/distributors at inception of their distribution contracts or at the inception of certain sales/marketing programs are accounted for as deferred revenue. As of March 31, 2024, the Company had $242.5 million of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheet. As of December 31, 2023, the Company had $246.2 million of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheet. During both the three-months ended March 31, 2024 and 2023, $9.9 million of deferred revenue was recognized in net sales. See Note 10.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

3. LEASES

The Company leases identified assets consisting primarily of office and warehouse space, warehouse equipment and vehicles. Leases are classified as either finance leases or operating leases based on criteria in ASC 842, “Leases”. The Company’s leases have remaining lease terms of less than one year to 10 years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year.

The components of lease cost were as follows:

	Three-Months Ended March 31,
	2024		2023
Operating lease cost	$	3,802	$	2,467
Short-term lease cost		2,670		979
Variable lease cost		213		215
Finance leases:
Amortization of right-of-use assets		595		123
Interest on lease liabilities		91		14
Finance lease cost		686		137
Total lease cost	$	7,371	$	3,798

Supplemental cash flow information was as follows:

	Three-Months Ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	3,607	$	2,391
Operating cash outflows from finance leases		91		14
Financing cash outflows from finance leases		2,897		598
Right-of-use assets obtained in exchange for lease obligations:
Finance leases		747		2,227
Operating leases		1,091		313

12

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Supplemental balance sheet information was as follows:

		March 31,		December 31,
	Balance Sheet Location	2024		2023
Operating leases:
Right-of-use assets	Other assets	$	56,421	$	58,845
Current lease liabilities	Accrued liabilities	$	11,122	$	11,088
Noncurrent lease liabilities	Other liabilities		46,474		48,459
Total operating lease liabilities		$	57,596	$	59,547
Finance leases:
Right-of-use assets	Property and equipment, net	$	10,091	$	11,147
Current lease liabilities	Accrued liabilities	$	4,297	$	6,449
Noncurrent lease liabilities	Other liabilities		14		19
Total finance lease liabilities		$	4,311	$	6,468

Weighted-average remaining lease term and weighted-average discount rate for the Company’s leases were as follows:

	March 31, 2024		December 31, 2023
Weighted-average remaining lease term in years:
Operating leases	6.2		6.3
Finance leases	0.5		0.7
Weighted-average discount rate:
Operating leases	4.7	%	4.7	%
Finance leases	6.3	%	6.3	%

The following table outlines maturities of the Company’s lease liabilities as of March 31, 2024:

	Undiscounted Future Lease Payments
	Operating Leases		Finance Leases
2024 (from April 1, 2024 to December 31, 2024)	$	10,213	$	4,275
2025		11,942		118
2026		9,824		2
2027		9,242		—
2028		7,709		—
2029 and thereafter		17,820		—
Total lease payments		66,750		4,395
Less imputed interest		(9,154)		(84)
Total	$	57,596	$	4,311

As of March 31, 2024, the Company did not have any significant leases that had not yet commenced.

13

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

4. INVESTMENTS

The following table summarizes the Company’s investments at:

									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
March 31, 2024	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	157,074	$	11	$	—	$	157,085	$	—	$	—
Certificates of deposit		24,831		—		—		24,831		—		—
U.S. government agency securities		101,893		16		54		101,855		54		—
U.S. treasuries		530,697		23		390		530,330		390		—
Corporate bonds		170,198		32		130		170,100		130		—
Long-term:
Corporate bonds		8,205		—		43		8,162		43		—
Total	$	992,898	$	82	$	617	$	992,363	$	617	$	—

									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
December 31, 2023	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	163,775	$	—	$	1	$	163,774	$	1	$	—
Certificates of deposit		15,590		—		—		15,590		—		—
Municipal securities		361		—		—		361		—		—
U.S. government agency securities		116,524		90		66		116,548		66		—
U.S. treasuries		412,936		205		1,084		412,057		1,084		—
Corporate bonds		247,340		89		154		247,275		154		—
Long-term:
U.S. government agency securities		23,485		51		5		23,531		5		—
U.S. treasuries		35,896		79		8		35,967		8		—
Corporate bonds		16,903		32		2		16,933		2		—
Total	$	1,032,810	$	546	$	1,320	$	1,032,036	$	1,320	$	—

During the three-months ended March 31, 2024 and 2023, realized gains or losses recognized on the sale of investments were not significant.

The Company’s investments at March 31, 2024 and December 31, 2023 carried investment grade credit ratings.

14

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The following table summarizes the underlying contractual maturities of the Company’s investments at:

	March 31, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	157,074	$	157,085	$	163,775	$	163,774
Municipal securities		—		—		361		361
U.S. government agency securities		101,893		101,855		116,524		116,548
Certificates of deposit		24,831		24,831		15,590		15,590
U.S. treasuries		530,697		530,330		412,936		412,057
Corporate bonds		170,198		170,100		247,340		247,275
Due 1 - 10 years:
U.S. treasuries		—		—		35,896		35,967
U.S. government agency securities		—		—		23,485		23,531
Corporate bonds		8,205		8,162		16,903		16,933
Total	$	992,898	$	992,363	$	1,032,810	$	1,032,036

5. FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

ASC 820, “Fair Value Measurement”, provides a framework for measuring fair value and requires disclosures regarding fair value measurements. ASC 820 defines fair value as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The three levels of inputs required by the standard that the Company uses to measure fair value are summarized below.

● Level 1: Quoted prices in active markets for identical assets or liabilities.

● Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

● Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

ASC 820 requires the use of observable market inputs (quoted market prices) when measuring fair value and requires a Level 1 quoted price to be used to measure fair value whenever possible.

15

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The following tables present the fair value of the Company’s financial assets and liabilities that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy at:

March 31, 2024	Level 1		Level 2		Level 3		Total
Cash	$	973,260	$	—	$	—	$	973,260
Money market funds		1,026,552		—		—		1,026,552
Certificates of deposit		—		74,208		—		74,208
Commercial paper		—		193,959		—		193,959
Corporate bonds		—		205,924		—		205,924
U.S. government agency securities		—		146,214		—		146,214
U.S. treasuries		—		948,770		—		948,770
Foreign currency derivatives		—		(591)		—		(591)
Commodity derivatives		—		2,279		—		2,279
Total	$	1,999,812	$	1,570,763	$	—	$	3,570,575
Amounts included in:
Cash and cash equivalents	$	1,999,812	$	576,712	$	—	$	2,576,524
Short-term investments		—		984,201		—		984,201
Accounts receivable, net		—		2,981		—		2,981
Other assets		—		332		—		332
Investments		—		8,162		—		8,162
Accrued liabilities		—		(1,625)		—		(1,625)
Total	$	1,999,812	$	1,570,763	$	—	$	3,570,575

December 31, 2023	Level 1		Level 2		Level 3		Total
Cash	$	1,105,701	$	—	$	—	$	1,105,701
Money market funds		960,873		—		—		960,873
Certificates of deposit		—		33,824		—		33,824
Commercial paper		—		163,774		—		163,774
Corporate bonds		—		264,208		—		264,208
Municipal securities		—		361		—		361
U.S. government agency securities		—		159,585		—		159,585
U.S. treasuries		—		641,385		—		641,385
Foreign currency derivatives		—		(1,083)		—		(1,083)
Commodity derivatives		—		4,410		—		4,410
Total	$	2,066,574	$	1,266,464	$	—	$	3,333,038
Amounts included in:
Cash and cash equivalents	$	2,066,574	$	231,101	$	—	$	2,297,675
Short-term investments		—		955,605		—		955,605
Accounts receivable, net		—		4,618		—		4,618
Other assets		—		316		—		316
Investments		—		76,431		—		76,431
Accrued liabilities		—		(1,607)		—		(1,607)
Total	$	2,066,574	$	1,266,464	$	—	$	3,333,038

All of the Company’s short-term and long-term investments are classified within Level 1 or Level 2 of the fair value hierarchy. The Company’s valuation of its Level 1 investments is based on quoted market prices in active markets for identical securities. The Company’s valuation of its Level 2 investments is based on other observable inputs, specifically a market approach which utilizes valuation models, pricing systems, mathematical tools and other relevant information for the same or similar securities. The Company’s valuation of its Level 2 foreign currency exchange contracts is based on quoted market prices of the same or similar instruments, adjusted

16

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

for counterparty risk. There were no transfers between Level 1 and Level 2 measurements during the three-months ended March 31, 2024, or during the year-ended December 31, 2023, and there were no changes in the Company’s valuation techniques.

6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company accounts for its derivative instruments and hedging activities under ASC 815, “Derivatives and Hedging.” The following table presents the fair values of the Company’s derivative instruments:

	Fair value
	March 31,		December 31,
Derivatives designated as hedging instruments	2024		2023		Balance Sheet location
Assets:
Commodity contracts	$	2,379	$	4,480	Accounts receivable, net
Commodity contracts	$	332	$	316	Other assets
Liabilities:
Commodity contracts	$	(432)	$	(386)	Accrued liabilities

	Fair value
	March 31,		December 31,
Derivatives not designated as hedging instruments	2024		2023		Balance Sheet location
Assets:
Foreign currency exchange contracts	$	602	$	138	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts	$	(1,193)	$	(1,221)	Accrued liabilities

Cash Flow Hedging Strategy

The Company uses cash flow hedges to minimize the variability in cash flows of forecasted transactions caused by fluctuations in commodity prices. The changes in the fair values of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”) and are reclassified into the line item in our condensed consolidated statement of income in which the hedged items are recorded in the same period that the hedged items affect earnings. The changes in the fair values of hedges that are determined to be ineffective are immediately reclassified from AOCI into earnings. The maximum length of time for which the Company hedges its exposure to the variability in future cash flows is currently less than two years.

The Company has entered into commodity hedge contracts to mitigate the price risk associated with a portion of its forecasted aluminum purchases. These derivative instruments were designated as part of the Company’s commodity cash flow hedging program. The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of aluminum. The total notional values of derivatives that were designated and qualified for this program were $126.1 million and $98.3 million as of March 31, 2024 and December 31, 2023, respectively. Transactions under the commodity cash flow hedging program were executed beginning in May 2023.

The following table presents the impact that changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income (“OCI”), AOCI and earnings:

Three-months ended March 31, 2024
Derivatives				Gain (loss)
designated as	Gain (loss) recognized		Location of gain (loss)	reclassified from
hedging instruments	in AOCI		recognized in income	AOCI into income
Commodity contracts	$	2,279	Cost of sales	$	(966)

17

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

As of March 31, 2024, the Company estimates that it will reclassify into earnings net gains (losses) of $1.9 million from the amount recorded in AOCI as the anticipated cash flows occur during the next 12 months.

Economic (Non-Designated) Hedging Strategy

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the three-months ended March 31, 2024 and 2023, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries’ non-functional currency denominated assets and liabilities. All foreign currency exchange contracts of the Company that were outstanding as of March 31, 2024 have terms of approximately one month or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

The Company has not designated its foreign currency exchange contracts as hedge transactions. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in interest and other income (expense), net, in the condensed consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. The total notional values of derivatives related to our foreign currency economic hedges were $230.5 million and $282.7 million as of March 31, 2024 and December 31, 2023, respectively.

The net gains (losses) on derivatives not designated as hedging instruments in the condensed consolidated statements of income were as follows:

		Gain (loss)
		recognized in income on
		derivatives
		Three-months ended
Derivatives not designated as	Location of gain (loss)	March 31,		March 31,
hedging instruments	recognized in income on derivatives	2024		2023
Foreign currency exchange contracts	Interest and other income, net	$	5,343	$	(7,852)

Certain of the Company’s counterparty agreements contain provisions that require the Company to post collateral on derivative instruments in a net liability position. As of March 31, 2024, $0.6 million was posted as collateral.

7. INVENTORIES

Inventories consist of the following at:

	March 31,		December 31,
	2024		2023
Raw materials	$	285,966	$	330,021
Work in process		1,601		1,403
Finished goods		652,063		639,982
	$	939,630	$	971,406

18

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

8. PROPERTY AND EQUIPMENT, NET

Property and equipment consist of the following at:

	March 31,		December 31,
	2024		2023
Land	$	153,340	$	152,253
Leasehold improvements		38,159		37,946
Furniture and fixtures		11,401		11,422
Office and computer equipment		26,421		25,560
Computer software		5,053		5,344
Equipment		449,321		426,466
Buildings		212,359		211,951
Vehicles		69,937		69,527
Assets under construction		234,627		211,562
		1,200,618		1,152,031
Less: accumulated depreciation and amortization		(277,328)		(261,235)
	$	923,290	$	890,796

Total depreciation and amortization expense was $19.2 million and $14.8 million for the three-months ended March 31, 2024 and 2023, respectively.

9.GOODWILL AND OTHER INTANGIBLE ASSETS

The following is a roll-forward of goodwill for the three-months ended March 31, 2024 and 2023 by reportable segment:

	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Balance at December 31, 2023	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941
Acquisitions		—		—		—		—		—
Balance at March 31, 2024	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941

	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Balance at December 31, 2022	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941
Acquisitions		—		—		—		—		—
Balance at March 31, 2023	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941

Intangible assets consist of the following at:

	March 31,		December 31,
	2024		2023
Amortizing intangibles	$	144,378	$	144,582
Accumulated amortization		(75,982)		(74,699)
		68,396		69,883
Non-amortizing intangibles		1,362,366		1,357,256
	$	1,430,762	$	1,427,139

19

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Amortizing intangibles primarily consist of customer relationships. All amortizing intangibles have been assigned an estimated finite useful life and such intangibles are amortized on a straight-line basis over the number of years that approximate their respective useful lives, generally ten to fifteen years. Total amortization expense was $1.3 million and $2.0 million for the three-months ended March 31, 2024 and 2023, respectively.

The following is the future estimated amortization expense related to amortizing intangibles as of March 31, 2024:

2024 (from April 1, 2024 to December 31, 2024)	$	4,461
2025		5,947
2026		5,947
2027		5,946
2028		5,945
2029 and thereafter		40,150
	$	68,396

10. DISTRIBUTION AGREEMENTS

In the normal course of business, amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, or at the inception of certain sales/marketing programs are accounted for as deferred revenue and are recognized as revenue ratably over the anticipated life of the respective agreement, generally 20 years or program duration, as the case may be. Revenue recognized was $9.9 million for both the three-months ended March 31, 2024 and 2023.

11. COMMITMENTS AND CONTINGENCIES

The Company had purchase commitments aggregating approximately $345.5 million at March 31, 2024, which represented commitments made by the Company and its subsidiaries to various suppliers of raw materials for the production of its products. These obligations vary in terms but are generally satisfied within one year.

The Company had contractual obligations aggregating approximately $451.1 million at March 31, 2024, which related primarily to sponsorships and other marketing activities.

The Company has a credit facility with HSBC Bank (China) Company Limited, Shanghai Branch, of $15.0 million. At March 31, 2024, the interest rate on borrowings under the line of credit was 5.5%. As of March 31, 2024, no amount was outstanding on this line of credit.

Litigation — From time to time in the normal course of business, the Company is named in litigation, including labor and employment matters, personal injury matters, consumer class actions, intellectual property matters and claims from prior distributors. Although it is not possible to predict the ultimate outcome of such litigation, based on the facts known to the Company, management believes that such litigation in aggregate will likely not have a material adverse effect on the Company’s financial position or results of operations.

The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that is accrued, if any, and any related insurance reimbursements. As of March 31, 2024 and December 31, 2023, $0.3 million of loss contingencies were included in the Company’s accompanying condensed consolidated balance sheet.

20

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

12. ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, after tax, for the three-months ended March 31, 2024 and 2023 are as follows:

	Accumulated
	Net Gains				Unrealized
	(Losses)		Currency		Gains (Losses)
	on Commodity		Translation		on Available-for-
	Derivatives		Gains (Losses)		Sale Securities		Total
Balance at December 31, 2023	$	4,410	$	(128,989)	$	(758)	$	(125,337)
Other comprehensive income (loss) before reclassifications		(2,131)		(30,695)		223		(32,603)
Net current-period other comprehensive income (loss)		(2,131)		(30,695)		223		(32,603)
Balance at March 31, 2024	$	2,279	$	(159,684)	$	(535)	$	(157,940)

	Accumulated
	Net Gains				Unrealized
	(Losses)		Currency		Gains (Losses)
	on Commodity		Translation		on Available-for-
	Derivatives		Gains (Losses)		Sale Securities		Total
Balance at December 31, 2022	$	—	$	(153,230)	$	(5,843)	$	(159,073)
Other comprehensive income (loss) before reclassifications		—		7,981		3,181		11,162
Net current-period other comprehensive income (loss)		—		7,981		3,181		11,162
Balance at March 31, 2023	$	—	$	(145,249)	$	(2,662)	$	(147,911)

13. TREASURY STOCK

On November 2, 2022, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “November 2022 Repurchase Plan”). During the three-months ended March 31, 2024, the Company purchased approximately 1.8 million shares of common stock at an average purchase price of $54.96 per share, for a total amount of approximately $97.2 million (excluding broker commissions), under the November 2022 Repurchase Plan. As of May 7, 2024, $142.4 million remained available for repurchase under the November 2022 Repurchase Plan.

On November 7, 2023, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “November 2023 Repurchase Plan”). During the three-months ended March 31, 2024, no shares were repurchased under the November 2023 Repurchase Plan. As of May 7, 2024, $500.0 million remained available for repurchase under the November 2023 Repurchase Plan.

The aggregate amount of the Company’s outstanding common stock that remains available for repurchase under all previously authorized repurchase plans is $642.4 million as of May 7, 2024.

During the three-months ended March 31, 2024, 0.4 million shares of common stock were purchased from employees in lieu of cash payments for options exercised or withholding taxes due for a total amount of $23.0 million. While such purchases are considered common stock repurchases, they are not counted as purchases against the Company’s authorized share repurchase programs. Such shares are included in common stock in treasury in the accompanying consolidated balance sheet at March 31, 2024.

14. STOCK-BASED COMPENSATION

The Company has two stock-based compensation plans under which shares were available for grant at March 31, 2024: (i) the Monster Beverage Corporation 2020 Omnibus Incentive Plan, including the Monster Beverage Corporation Deferred Compensation Plan as a sub-plan thereunder, and (ii) the Monster Beverage Corporation 2017 Compensation Plan for Non-Employee Directors as

21

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Amended and Restated on February 23, 2022, including the Monster Beverage Corporation Deferred Compensation Plan for Non-Employee Directors as a sub-plan thereunder.

The Company recorded $22.5 million and $16.1 million of compensation expense relating to outstanding options, restricted stock units, performance share units and other share-based awards during the three-months ended March 31, 2024 and 2023, respectively.

The tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options and vesting of restricted stock units and performance share units for the three-months ended March 31, 2024 and 2023 was $7.5 million and $25.9 million, respectively.

Stock Options

Under the Company’s stock-based compensation plans, all stock options granted as of March 31, 2024 were granted at prices based on the fair value of the Company’s common stock on the date of grant. The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company uses historical data to determine the exercise behavior, volatility and forfeiture rate of the options.

The following weighted-average assumptions were used to estimate the fair value of options granted during:

	Three-Months Ended March 31,
	2024		2023
Dividend yield	0.0	%	0.0	%
Expected volatility	27.5	%	27.6	%
Risk-free interest rate	4.3	%	3.7	%
Expected term	6.4	years	6.3	years

Expected Volatility: The Company uses historical volatility as it provides a reasonable estimate of the expected volatility. Historical volatility is based on the most recent volatility of the stock price over a period of time equivalent to the expected term of the option.

Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. treasury zero-coupon yield curve in effect at the time of grant for the expected term of the option.

Expected Term: The Company’s expected term represents the weighted-average period that the Company’s stock options are expected to be outstanding. The expected term is based on the expected time to post-vesting exercise of options by employees. The Company uses historical exercise patterns of previously granted options to derive employee behavioral patterns used to forecast expected exercise patterns.

22

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The following table summarizes the Company’s activities with respect to its stock option plans as follows:

				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Shares (in	Price Per		Term (in	Aggregate
Options	thousands)	Share		years)	Intrinsic Value
Outstanding at January 1, 2024	24,983	$	33.64	5.8	$	598,866
Granted 01/01/24 - 03/31/24	4,332	$	60.29
Exercised	(1,457)	$	26.35
Cancelled or forfeited	(14)	$	40.13
Outstanding at March 31, 2024	27,844	$	38.17	6.3	$	592,303
Vested and expected to vest in the future at March 31, 2024	26,628	$	37.55	6.2	$	582,560
Exercisable at March 31, 2024	15,538	$	29.22	4.3	$	467,020

The weighted-average grant-date fair value of options granted during the three-months ended March 31, 2024 and 2023 was $22.69 per share and $18.23 per share, respectively.

The total intrinsic value of options exercised during the three-months ended March 31, 2024 and 2023 was $47.6 million and $131.0 million, respectively.

Cash received from option exercises under all plans for the three-months ended March 31, 2024 and 2023 was $38.4 million and $36.3 million, respectively.

At March 31, 2024, there was $174.7 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 3.6 years.

Restricted Stock Units and Performance Share Units

The cost of stock-based compensation for restricted stock units and performance share units is measured based on the closing fair market value of the Company’s common stock at the date of grant. In the event that the Company has the option and intent to settle a restricted stock unit or performance share unit in cash, the award is classified as a liability and revalued at each balance sheet date.

The following table summarizes the Company’s activities with respect to non-vested restricted stock units and performance share units as follows:

		Weighted
	Number of	Average
	Shares (in	Grant-Date
	thousands)	Fair Value
Non-vested at January 1, 2024	1,964	$	40.95
Granted 01/01/24 - 03/31/241	502	$	57.04
Vested	(821)	$	40.63
Forfeited/cancelled	(1)	$	30.36
Non-vested at March 31, 2024	1,644	$	46.03

¹The grant activity for performance share units is recorded based on the target performance level earning 100% of target performance share units. The actual number of performance share units earned could range from 0% to 200% of target depending on the achievement of pre-established performance goals.

23

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The weighted-average grant-date fair value of restricted stock units and/or performance share units granted during the three-months ended March 31, 2024 and 2023 was $60.27 and $50.83 per share, respectively.

As of March 31, 2024, 1.6 million of restricted stock units and performance share units are expected to vest over their respective terms.

At March 31, 2024, total unrecognized compensation expense relating to non-vested restricted stock units and performance share units was $49.6 million, which is expected to be recognized over a weighted-average period of 1.8 years.

Other Share-Based Awards

The Company has granted other share-based awards to certain employees that are payable in cash. These awards are classified as liabilities and are valued based on the fair value of the award at the grant date and are remeasured at each reporting date until settlement, with compensation expense being recognized in proportion to the completed requisite service period up until date of settlement. At March 31, 2024, other share-based awards outstanding included grants that vest over three years payable in the first quarters of 2025, 2026 and 2027.

At March 31, 2024, there was $0.8 million of total unrecognized compensation expense related to nonvested other share-based awards granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 1.3 years.

15. INCOME TAXES

The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the three-months ended March 31, 2024:

	Gross Unrecognized
	Tax Benefits
Balance at December 31, 2023	$	3,109
Additions for tax positions related to the current year		2,900
Additions for tax positions related to the prior years		—
Decreases for tax positions related to the prior years		—
Balance at March 31, 2024	$	6,009

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s condensed consolidated financial statements. As of March 31, 2024, the Company had approximately $0.7 million in accrued interest and penalties related to unrecognized tax benefits. If the Company were to prevail on all uncertain tax positions, the resultant impact on the Company’s effective tax rate would not be significant. It is expected that any change in the amount of unrecognized tax benefits within the next 12 months will not be significant.

The Company is subject to U.S. federal income tax as well as to income tax in multiple state and foreign jurisdictions.

The Company is in various stages of examination with certain states and certain foreign jurisdictions. The Company’s 2020 through 2023 U.S. federal income tax returns are subject to examination by the IRS. The Company’s state income tax returns are subject to examination for the 2019 through 2023 tax years. The United Kingdom and Ireland income tax returns are subject to examination for the 2019 through 2023 tax years.

24

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

16. EARNINGS PER SHARE

A reconciliation of the weighted-average shares used in the basic and diluted earnings per common share computations is presented below (in thousands):

	Three-Months Ended
	March 31,
	2024	2023
Weighted-average shares outstanding:
Basic	1,041,081	1,044,909
Dilutive	10,201	14,160
Diluted	1,051,282	1,059,069

For the three-months ended March 31, 2024 and 2023, options and awards outstanding totaling 5.0 million shares and 2.6 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

17. SEGMENT INFORMATION

The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment, which is primarily comprised of the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment, which is primarily comprised of the various energy drink brands acquired from TCCC in 2015 as well as the Company’s affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment, which is comprised of various craft beers, hard seltzers and FMBs and (iv) Other segment, which is comprised of the AFF Third-Party Products.

The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers/distributors. In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors.

Generally, the Monster Energy® Drinks segment generates higher per case net operating revenues, but lower per case gross profit margin percentages than the Strategic Brands segment.

The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, hard seltzers and FMBs primarily to beer distributors in the United States.

Generally, the Alcohol Brands segment has lower gross profit margin percentages than the Monster Energy® Drinks segment.

Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to “Corporate & Unallocated.” No asset information, other than goodwill and other intangible assets, has been provided in the Company’s reportable segments, as management does not measure or allocate such assets on a segment basis.

25

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The net revenues derived from the Company’s reportable segments and other financial information related thereto for the three-months ended March 31, 2024 and 2023 were as follows:

	Three-Months Ended
	March 31,
	2024		2023
Net sales:
Monster Energy® Drinks1	$	1,729,051	$	1,561,669
Strategic Brands		108,444		86,357
Alcohol Brands		56,070		46,290
Other		5,533		4,614
Corporate and unallocated		—		—
	$	1,899,098	$	1,698,930

	Three-Months Ended
	March 31,
	2024		2023
Operating Income:
Monster Energy® Drinks1	$	628,122	$	560,819
Strategic Brands		62,019		51,771
Alcohol Brands		(6,017)		(6,883)
Other		1,001		(293)
Corporate and unallocated		(143,134)		(120,350)
	$	541,991	$	485,064

	Three-Months Ended
	March 31,
	2024		2023
Income before tax:
Monster Energy® Drinks1	$	629,160	$	561,674
Strategic Brands		62,035		51,788
Alcohol Brands		(6,016)		(6,867)
Other		1,016		(293)
Corporate and unallocated		(108,450)		(108,742)
	$	577,745	$	497,560

(1) Includes $9.9 million for both the three-months ended March 31, 2024 and 2023, related to the recognition of deferred revenue.

	Three-Months Ended
	March 31,
	2024		2023
Depreciation and amortization:
Monster Energy® Drinks	$	12,608	$	8,989
Strategic Brands		229		221
Alcohol Brands		3,738		4,051
Other		40		1,123
Corporate and unallocated		3,860		2,424
	$	20,475	$	16,808

26

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Corporate and unallocated expenses for the three-months ended March 31, 2024 include $98.6 million of payroll costs, of which $22.0 million was attributable to stock-based compensation expenses (see Note 14 “Stock-Based Compensation”), as well as $20.0 million attributable to professional service expenses, including accounting and legal costs, and $24.5 million of other operating expenses.

Corporate and unallocated expenses for the three-months ended March 31, 2023 include $80.3 million of payroll costs, of which $15.7 million was attributable to stock-based compensation expenses (see Note 14 “Stock-Based Compensation”), as well as $22.1 million attributable to professional service expenses, including accounting and legal costs, and $18.0 million of other operating expenses.

Coca-Cola Europacific Partners accounted for approximately 14% and 13% of the Company’s net sales for the three-months ended March 31, 2024 and 2023, respectively.

Coca-Cola Consolidated, Inc. accounted for approximately 10% of the Company’s net sales for both the three-months ended March 31, 2024 and 2023.

Reyes Holdings, LLC accounted for approximately 9% of the Company’s net sales for both the three-months ended March 31, 2024 and 2023.

Net sales to customers outside the United States amounted to $744.1 million and $622.9 million for the three-months ended March 31, 2024 and 2023, respectively. Such sales were approximately 39% and 37% of net sales for the three-months ended March 31, 2024 and 2023, respectively.

Goodwill and other intangible assets for the Company’s reportable segments were as follows at:

	March 31,		December 31,
	2024		2023
Goodwill and other intangible assets:
Monster Energy® Drinks	$	1,668,188	$	1,663,814
Strategic Brands		982,676		982,471
Alcohol Brands		197,839		198,795
Other		—		—
	$	2,848,703	$	2,845,080

18. RELATED PARTY TRANSACTIONS

TCCC controls approximately 19.6% of the voting interests of the Company. The TCCC Subsidiaries, the TCCC Related Parties and certain TCCC independent bottlers, purchase and distribute the Company’s products in domestic and certain international markets. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, were $22.5 million and $15.7 million for the three-months ended March 31, 2024 and 2023, respectively, and are included as a reduction to net sales.

TCCC commissions, based on sales to TCCC independent bottlers, were $9.7 million and $8.8 million for the three-months ended March 31, 2024 and 2023, respectively, and are included in operating expenses.

Net sales to the TCCC Subsidiaries for the three-months ended March 31, 2024 and 2023 were $41.7 million and $35.1 million, respectively.

The Company also purchases concentrates from TCCC which are then sold to certain of the Company’s bottlers/distributors. Concentrate purchases from TCCC were $8.0 million and $6.5 million for the three-months ended March 31, 2024 and 2023, respectively.

27

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Certain TCCC Subsidiaries also contract manufacture certain of the Company’s energy drinks. Such contract manufacturing expenses were $9.0 million and $7.4 million for the three-months ended March 31, 2024 and 2023, respectively.

Accounts receivable, accounts payable, accrued promotional allowances and accrued liabilities related to the TCCC Subsidiaries were as follows at:

	March 31,		December 31,
	2024		2023
Accounts receivable, net	$	139,825	$	135,246
Accounts payable	$	(35,923)	$	(68,386)
Accrued promotional allowances	$	(15,260)	$	(13,794)
Accrued liabilities	$	(25,325)	$	(19,745)

One director of the Company through certain trusts, and a family member of one director are the principal owners of a company that provides promotional materials to the Company. Expenses incurred with such company in connection with promotional materials purchased during the three-months ended March 31, 2024 and 2023 were $1.9 million and $1.1 million, respectively.

The Company occasionally charters a private aircraft that is indirectly owned by Mr. Rodney C. Sacks, Co-Chief Executive Officer and Chairman of the Board of Directors. On certain occasions, Mr. Sacks is accompanied by guests and other Company personnel when using such aircraft for business travel. During the three-months ended March 31, 2024 and 2023, the Company incurred no costs in relation to the aircraft.

In December 2018, the Company and a director of the Company entered into a 50-50 partnership that purchased land, and real property thereon, in Kona, Hawaii for the purpose of producing coffee products. In October 2023, the partnership made a special, one-time distribution to each of the partners, reflecting the amount of their initial capital contributions. This partnership meets the definition of a Variable Interest Entity (“VIE”) for which the Company has determined that it is the primary beneficiary. Therefore, the Company consolidates the VIE in the accompanying consolidated financial statements. The aggregate carrying values of the VIE’s assets and liabilities, after elimination of any intercompany transactions and balances, as well as the results of operations for all periods presented, are not material to the Company’s consolidated financial statements.

19. SUBSEQUENT EVENTS

On May 1, 2024, the Board of Directors authorized the Company to commence a modified “Dutch auction” tender offer to repurchase up to $3.0 billion of its outstanding shares of common stock. The Company anticipates commencing the tender offer in May 2024. Details of the tender offer, including the offer price, conditions, potential participation by management and other terms, will be set forth in the offering materials to be distributed to shareholders upon commencement of the tender offer.

The Company expects to fund the tender offer with approximately $2.0 billion of cash on hand and approximately $1.0 billion in combined borrowings, consisting of a new revolving credit facility and a new delayed draw term loan facility, each expected to be consummated prior to the completion of the tender offer. The tender offer will be made outside of the Company’s previously authorized repurchase programs and will allow the Company to retain the ability to purchase additional shares through the previously authorized repurchase programs in the future.

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our Business

When this report uses the words “the Company”, “we”, “us”, and “our”, these words refer to Monster Beverage Corporation and its subsidiaries, unless the context otherwise requires. Based in Corona, California, Monster Beverage Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries. The Company’s subsidiaries primarily develop and market energy drinks, and to a lesser extent, craft beers, hard seltzers and flavored malt beverages (“FMBs”).

Pricing Actions

We implemented pricing actions including (i) price increases effective April 1, 2023 (limited pack sizes) in the United States and (ii) price increases at various times in certain international markets during the second, third and fourth quarters of 2023 as well as the first quarter of 2024 (collectively, the “Pricing Actions”), all of which positively impacted net sales and gross profit margins in the first quarter of 2024 as compared to the first quarter of 2023.

The Company currently anticipates implementing price increases in the United States, at amounts yet to be determined, on certain of its Monster Energy® brand energy drinks in the fourth quarter of 2024.

Overview

We develop, market, sell and distribute energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names:

●      Monster Energy®	●      Burn®
●      Monster Energy Ultra®	●      Mother®
●      Monster Rehab®	●      Nalu®
●      Monster Energy® Nitro	●      Ultra Energy®
●      Java Monster®	●      Play® and Power Play® (stylized)
●      Punch Monster®	●      Relentless®
●      Juice Monster®	●      BPM®
●      Reign Total Body Fuel®	●      BU®
●      Reign Inferno® Thermogenic Fuel	●      Gladiator®
●      Reign Storm®	●      Samurai®
●      Bang Energy®	●      Live+®
●      NOS®	●      Predator®
●      Full Throttle®	●      Fury®

We also develop, market, sell and distribute craft beers, FMBs and hard seltzers under a number of brands, including Jai Alai® IPA, Florida Man^TM IPA, Dale’s Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep Ellum^TM IPA, Perrin Brewing Company^TM Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The Beast Unleashed®, Nasty Beast^TM Hard Tea and a host of other brands.

We also develop, market, sell and distribute still and sparkling waters under the Monster Tour Water® brand name.

We have four operating and reportable segments: (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of our Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as our affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment (“Alcohol Brands”), which is comprised of various craft beers, hard seltzers and FMBs and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors LLC (“AFF”), a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).

29

During the three-months ended March 31, 2024, we continued to expand our existing drink portfolio by adding additional products to our portfolio in a number of countries and further developed our distribution markets. During the three-months ended March 31, 2024, we sold the following new products to our customers:

● Burn® Guava

● Java Monster® Irish Crème

● Juice Monster® Rio Punch^TM

● Juiced Monster® Bad Apple®

● Monster Energy® Ultra Fantasy Ruby Red^TM

● Monster® Reserve Peaches N’ Crème

● Nalu® Yuzu Rosemary

● Nasty Beast^TM Hard Tea Green Tea

● Nasty Beast^TM Hard Tea Original

● Nasty Beast^TM Hard Tea Peach

● Nasty Beast^TM Hard Tea Tea+Lemonade

● Reign Storm® Mango

● Reign Storm® Strawberry Apricot

● Reign Total Body Fuel® Sour Gummy Worm

● Relentless® Fruit Punch

In the normal course of business, we discontinue certain products and/or product lines. Those products or product lines discontinued in the three-months ended March 31, 2024, either individually or in aggregate, did not have a material adverse impact on our financial position, results of operations or liquidity.

Our net sales of $1.90 billion for the three-months ended March 31, 2024 represented record sales for our first fiscal quarter. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $64.4 million ($50.4 million related to Argentina) for the three-months ended March 31, 2024.

The vast majority of our net sales are derived from our Monster Energy® Drinks segment. Net sales of our Monster Energy® Drinks segment were $1.73 billion for the three-months ended March 31, 2024. Net sales of our Strategic Brands segment were $108.4 million for the three-months ended March 31, 2024. Net sales of our Alcohol Brands segment were $56.1 million for the three-months ended March 31, 2024. Net sales of our Other segment were $5.5 million for the three-months ended March 31, 2024.

Our Monster Energy® Drinks segment represented 91.0% and 91.9% of our net sales for the three-months ended March 31, 2024 and 2023, respectively. Our Strategic Brands segment represented 5.7% and 5.1% of our net sales for the three-months ended March 31, 2024 and 2023, respectively. Our Alcohol Brands Segment represented 3.0% and 2.7% of our net sales for the three-months ended March 31, 2024 and 2023, respectively. Our Other segment represented 0.3% of our net sales for both the three-months ended March 31, 2024 and 2023.

Our growth strategy includes further developing our domestic markets, expanding our international business and growing our business into new sectors, such as the alcohol beverage sector. Net sales to customers outside the United States were $744.1 million for the three-months ended March 31, 2024, an increase of approximately $121.2 million, or 19.5% higher than net sales to customers outside of the United States of $622.9 million for the three-months ended March 31, 2023. Such sales were approximately 39% and 37% of net sales for the three-months ended March 31, 2024 and 2023, respectively. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers outside of the United States of approximately $64.4 million ($50.4 million related to Argentina) for the three-months ended March 31, 2024. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 29.8% (21.7% exclusive of Argentina’s impact) for the three-months ended March 31, 2024.

30

Our non-alcohol customers are primarily full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, value stores, e-commerce retailers and the military. Our alcohol customers are primarily beer distributors who in turn sell to retailers within the alcohol distribution system. Percentages of our gross billings to our various customer types for the three-months ended March 31, 2024 and 2023 are reflected below. Such information includes sales made by us directly to the customer types concerned, which include our full service beverage bottlers/distributors in the United States. Such full service beverage bottlers/distributors in turn sell certain of our products to some of the same customer types listed below. We limit our description of our customer types to include only our sales to our full service bottlers/distributors without reference to such bottlers/distributors’ sales to their own customers.

	Three-Months Ended
	March 31,
	2024		2023
U.S. full service bottlers/distributors	46	%	48	%
International full service bottlers/distributors	41	%	38	%
Club stores and e-commerce retailers	8	%	9	%
Retail grocery, direct convenience, specialty chains and wholesalers	2	%	2	%
Alcohol, value stores and other	3	%	3	%

Our non-alcohol customers include Coca-Cola Canada Bottling Limited, Coca-Cola Consolidated, Inc., Coca-Cola Bottling Company United, Inc., Reyes Holdings, LLC, Coca-Cola Southwest Beverages LLC, The Coca-Cola Bottling Company of Northern New England, Inc., Swire Pacific Holdings, Inc. (USA), Liberty Coca-Cola Beverages, LLC, Coca-Cola Europacific Partners (formerly Coca-Cola European Partners and Coca-Cola Amatil), Coca-Cola Hellenic, Coca-Cola FEMSA, Swire Coca-Cola (China), COFCO Coca-Cola, Coca-Cola Beverages Africa, Coca-Cola İçecek and certain other TCCC network bottlers, Asahi Soft Drinks, Co., Ltd., Wal-Mart, Inc. (including Sam’s Club), Costco Wholesale Corporation and Amazon.com, Inc.

Our alcohol customers include Reyes Beverage Group, Ben E. Keith Company, J.J. Taylor Distributing, and Sheehan Family Companies.

A decision by any large customer to decrease amounts purchased from us or to cease carrying our products could have a material adverse effect on our financial condition and consolidated results of operations.

Coca-Cola Europacific Partners accounted for approximately 14% and 13% of our net sales for the three-months ended March 31, 2024 and 2023, respectively.

Coca-Cola Consolidated, Inc. accounted for approximately 10% of our net sales for both the three-months ended March 31, 2024 and 2023.

Reyes Holdings, LLC accounted for approximately 9% of our net sales for both the three-months ended March 31, 2024 and 2023.

31

Results of Operations

The following table sets forth key statistics for the three-months ended March 31, 2024 and 2023.

	Three-Months Ended						Percentage
(In thousands, except per share amounts)	March 31,						Change
	2024			2023			24 vs. 23
Net sales1	$	1,899,098		$	1,698,930		11.8	%
Cost of sales		871,969			801,081		8.8	%
Gross profit*1		1,027,129			897,849		14.4	%
Gross profit as a percentage of net sales		54.1	%		52.8	%
Operating expenses		485,138			412,785		17.5	%
Operating expenses as a percentage of net sales		25.5	%		24.3	%
Operating income1		541,991			485,064		11.7	%
Operating income as a percentage of net sales		28.5	%		28.6	%
Interest and other income, net		35,754			12,496		186.1	%
Income before provision for income taxes1		577,745			497,560		16.1	%
Provision for income taxes		135,696			100,116		35.5	%
Income taxes as a percentage of income before taxes		23.5	%		20.1	%
Net income	$	442,049		$	397,444		11.2	%
Net income as a percentage of net sales		23.3	%		23.4	%
Net income per common share:
Basic	$	0.42		$	0.38		11.6	%
Diluted	$	0.42		$	0.38		12.0	%
Energy drink case sales (in thousands) (in 192‑ounce case equivalents)		211,430			182,444		15.9	%

¹Includes $9.9 million for both the three-months ended March 31, 2024 and 2023, related to the recognition of deferred revenue.

*Gross profit may not be comparable to that of other entities since some entities include all costs associated with their distribution process in cost of sales, whereas others exclude certain costs and instead include such costs within another line item such as operating expenses. We include out-bound freight and warehouse costs in operating expenses rather than in cost of sales.

Three-Months Ended March 31, 2024 Compared to the Three-Months Ended March 31, 2023.

Net Sales

Net Sales. Net sales were $1.90 billion for the three-months ended March 31, 2024, an increase of approximately $200.2 million, or 11.8% higher than net sales of $1.70 billion for the three-months ended March 31, 2023. Net sales increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand, as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $64.4 million ($50.4 million related to Argentina) for the three-months ended March 31, 2024. Net sales on a foreign currency adjusted basis increased 15.6% (12.6% exclusive of Argentina’s impact) for the three-months ended March 31, 2024. The difference between reported net sales and net sales on a foreign currency adjusted basis was largely due to the impact of inflation related local currency price increases in Argentina, as well as the significant decrease in the Argentine Peso relative to the U.S. Dollar.

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Net sales were $693.0 million and $583.7 million for the three-months ended March 31, 2024 and 2023, respectively, in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean.

Net sales for the Monster Energy® Drinks segment were $1.73 billion for the three-months ended March 31, 2024, an increase of approximately $167.4 million, or 10.7% higher than net sales of $1.56 billion for the three-months ended March 31, 2023. Net sales for the Monster Energy® Drinks segment increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $54.6 million ($50.4 million related to Argentina) for the three-months ended March 31, 2024. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 14.2% (11.0% exclusive of Argentina’s impact) for the three-months ended March 31, 2024.

Net sales for the Strategic Brands segment were $108.4 million for the three-months ended March 31, 2024, an increase of approximately $22.1 million, or 25.6% higher than net sales of $86.4 million for the three-months ended March 31, 2023. Net sales for the Strategic Brands segment increased primarily due to increased sales by volume of our Fury®, NOS®, Burn® and Predator® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $9.8 million for the Strategic Brands segment for the three-months ended March 31, 2024. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 36.9% for the three-months ended March 31, 2024. Net sales of concentrates within the Strategic Brands segment tend to have more pronounced fluctuations from period to period as compared to net sales of our finished goods within the Monster Energy® Drinks segment.

Net sales for the Alcohol Brands segment were $56.1 million for the three-months ended March 31, 2024, an increase of approximately $9.8 million, or 21.1% higher than net sales of $46.3 million for the three-months ended March 31, 2023. Net sales of Nasty Beast^TM Hard Tea, launched during the 2024 first quarter, were $16.9 million for the three-months ended March 31, 2024.

Net sales for the Other segment were $5.5 million for the three-months ended March 31, 2024, an increase of approximately $0.9 million, or 19.9% higher than net sales of $4.6 million for the three-months ended March 31, 2023.

Case sales for our energy drink products, in 192-ounce case equivalents, were 211.4 million cases for the three-months ended March 31, 2024, an increase of approximately 29.0 million cases or 15.9% higher than case sales of 182.4 million cases for the three-months ended March 31, 2023. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) decreased to $8.69 for the three-months ended March 31, 2024, which was 3.8% lower than the average net sales per case of $9.03 for the three-months ended March 31, 2023.

Case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents, were 4.1 million cases for the three-months ended March 31, 2024, an increase of approximately 1.0 million cases or 31.0% higher than case sales of 3.1 million cases for the three-months ended March 31, 2023. Barrel sales for our craft beers, hard seltzers and FMBs, in 31 U.S. gallon equivalents, were 0.20 million barrels for the three-months ended March 31, 2024, an increase of approximately 0.05 million barrels or 31.0% higher than barrel sales of 0.15 million barrels for the three-months ended March 31, 2023.

Gross Profit

Gross profit was $1.03 billion for the three-months ended March 31, 2024, an increase of approximately $129.3 million, or 14.4% higher than the gross profit of $897.8 million for the three-months ended March 31, 2023. The increase in gross profit dollars was primarily the result of the $200.2 million increase in net sales for the three-months ended March 31, 2024.

Gross profit as a percentage of net sales increased to 54.1% for the three-months ended March 31, 2024 from 52.8% for the three-months ended March 31, 2023. The increase in gross profit as a percentage of net sales for the three-months ended March 31, 2024 was primarily the result of decreased freight-in costs, the Pricing Actions and lower input costs, partially offset by geographical sales mix.

Operating Expenses

Total operating expenses were $485.1 million for the three-months ended March 31, 2024, an increase of approximately $72.4 million, or 17.5% higher than total operating expenses of $412.8 million for the three-months ended March 31, 2023.

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The increase in operating expenses was primarily due to increased selling and marketing expenses of $25.4 million, including sponsorship and endorsements and social and digital marketing, increased payroll expenses of $22.6 million, as well as increased distribution expenses of $18.1 million. Operating expenses as a percentage of net sales for the three-months ended March 31, 2024 were 25.5% as compared to 24.3% for the three-months ended March 31, 2023.

Operating Income

Operating income was $542.0 million for the three-months ended March 31, 2024, an increase of approximately $56.9 million, or 11.7% higher than operating income of $485.1 million for the three-months ended March 31, 2023. Operating income as a percentage of net sales decreased to 28.5% for the three-months ended March 31, 2024 from 28.6% for the three-months ended March 31, 2023. The increase in operating income was primarily the result of an increase in net sales, as well as an increase in gross profit as a percentage of net sales, partially offset by an increase in operating expenses.

Operating income was $138.0 million and $93.7 million for the three-months ended March 31, 2024 and 2023, respectively, for our operations in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean.

Operating income for the Monster Energy® Drinks segment, exclusive of corporate and unallocated expenses, was $628.1 million for the three-months ended March 31, 2024, an increase of approximately $67.3 million, or 12.0% higher than operating income of $560.8 million for the three-months ended March 31, 2023. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of an increase in net sales as well as an increase in gross profit as a percentage of net sales.

Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $62.0 million for the three-months ended March 31, 2024, an increase of approximately $10.2 million, or 19.8% higher than operating income of $51.8 million for the three-months ended March 31, 2023. The increase in operating income for the Strategic Brands segment was primarily the result of an increase in net sales.

Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $6.0 million for the three-months ended March 31, 2024, a decrease of approximately $0.9 million, or 12.6% lower than operating loss of $6.9 million for the three-months ended March 31, 2023. The operating losses for the three-months ended March 31, 2024 were primarily due to continued expenses, infrastructure investments and the optimization of the Alcohol Brands segment.

Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $1.0 million for the three-months ended March 31, 2024, as compared to operating loss of ($0.3) million for the three-months ended March 31, 2023. The operating income for the three-months ended March 31, 2024 was primarily the result of an increase in net sales.

Interest and Other Income, net

Interest and other non-operating income, net, was $35.8 million for the three-months ended March 31, 2024, as compared to interest and other non-operating income, net, of $12.5 million for the three-months ended March 31, 2023. Foreign currency transaction losses were $6.0 million and $11.2 million for the three-months ended March 31, 2024 and 2023, respectively. Interest income was $41.2 million and $23.5 million for the three-months ended March 31, 2024 and 2023, respectively.

Provision for Income Taxes

Provision for income taxes was $135.7 million for the three-months ended March 31, 2024, an increase of $35.6 million, or 35.5% higher than the provision for income taxes of $100.1 million for the three-months ended March 31, 2023. The effective combined federal, state and foreign tax rate increased to 23.5% from 20.1% for the three-months ended March 31, 2024 and 2023, respectively. The increase in the effective tax rate was primarily attributable to the decrease in the stock-based compensation deduction in the three-months ended March 31, 2024 as compared to the three-months ended March 31, 2023.

Net Income

Net income was $442.0 million for the three-months ended March 31, 2024, an increase of $44.6 million, or 11.2% higher than net income of $397.4 million for the three-months ended March 31, 2023. The increase in net income for the three-months ended March

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31, 2024 was primarily due to the increase in net sales and the increase in the gross profit percentage of net sales, which was partially offset by the increase in operating expenses and the increase in the provision for income taxes.

Key Business Metrics

We use certain key metrics and financial measures not prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) to evaluate and manage our business. For a further discussion of how we use key metrics and certain non-GAAP financial measures, see “Non-GAAP Financial Measures and Other Key Metrics.”

Non-GAAP Financial Measures and Other Key Metrics

Gross Billings**

Gross billings were $2.19 billion for the three-months ended March 31, 2024, an increase of approximately $233.9 million, or 12.0% higher than gross billings of $1.96 billion for the three-months ended March 31, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $62.8 million ($50.4 million related to Argentina) for the three-months ended March 31, 2024.

Gross billings for the Monster Energy® Drinks segment were $2.00 billion for the three-months ended March 31, 2024, an increase of approximately $199.0 million, or 11.0% higher than gross billings of $1.80 billion for the three-months ended March 31, 2023. Gross billings for the Monster Energy® Drinks segment increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings for the Monster Energy® Drinks segment of approximately $53.1 million ($50.4 million related to Argentina) for the three-months ended March 31, 2024.

Gross billings for the Strategic Brands segment were $122.6 million for the three-months ended March 31, 2024, an increase of $23.9 million, or 24.2% higher than gross billings of $98.7 million for the three-months ended March 31, 2023. Gross billings for the Strategic Brands segment increased primarily due to increased sales by volume of our Fury®, Burn®, NOS® and Predator® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $9.7 million for the three-months ended March 31, 2024.

Gross billings for the Alcohol Brands segment were $57.0 million for the three-months ended March 31, 2024, an increase of approximately $10.0 million, or 21.4% higher than net sales of $47.0 million for the three-months ended March 31, 2023. Gross billings of Nasty Beast^TM Hard Tea, launched during the 2024 first quarter, were $17.3 million for the three-months ended March 31, 2024.

Gross billings for the Other segment were $5.6 million for the three-months ended March 31, 2024, an increase of $1.0 million, or 21.9% higher than gross billings of $4.6 million for the three-months ended March 31, 2023.

Promotional allowances, commissions and other expenses, as described in the footnote below, were $299.7 million for the three-months ended March 31, 2024, an increase of $33.7 million, or 12.6% higher than promotional allowances, commissions and other expenses of $266.1 million for the three-months ended March 31, 2023. Promotional allowances, commissions and other expenses as a percentage of gross billings increased to 13.7% from 13.6% for the three-months ended March 31, 2024 and 2023, respectively.

**Gross Billings represent amounts invoiced to customers net of cash discounts, returns and excise taxes. Gross billings are used internally by management as an indicator of and to monitor operating performance, including sales performance of particular products, salesperson performance, product growth or declines and is useful to investors in evaluating overall Company performance. The use of gross billings allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. We therefore believe that the presentation of gross billings provides a useful measure of our operating performance. The use of gross billings is not a measure that is recognized under GAAP and should not be considered as an alternative to net sales, which is determined in accordance with GAAP, and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross billings may not be comparable to similarly titled measures used by other companies, as gross billings has been defined by our internal reporting practices. In addition, gross billings may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from certain customers.

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The following table reconciles the non-GAAP financial measure of gross billings with the most directly comparable GAAP financial measure of net sales:

	Three-Months Ended				Percentage
(In thousands)	March 31,				Change
	2024		2023		24 vs. 23
Gross Billings	$	2,188,933	$	1,955,039	12.0	%
Deferred Revenue		9,875		9,946	(0.7)	%
Less: Promotional allowances, commissions and other expenses***		299,710		266,055	12.6	%
Net Sales	$	1,899,098	$	1,698,930	11.8	%

***Although the expenditures described in this line item are determined in accordance with GAAP and meet GAAP requirements, the presentation thereof does not conform to GAAP presentation requirements. Additionally, our definition of promotional and other allowances may not be comparable to similar items presented by other companies. Promotional and other allowances for our energy drink products primarily include consideration given to our non-alcohol bottlers/distributors or retail customers including, but not limited to the following: (i) discounts granted off list prices to support price promotions to end-consumers by retailers; (ii) reimbursements given to our bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products; (iii) our agreed share of fees given to bottlers/distributors and/or directly to retailers for advertising, in-store marketing and promotional activities; (iv) our agreed share of slotting, shelf space allowances and other fees given directly to retailers, club stores and/or wholesalers; (v) incentives given to our bottlers/distributors and/or retailers for achieving or exceeding certain predetermined sales goals; (vi) discounted or free products; (vii) contractual fees given to our bottlers/distributors related to sales made by us direct to certain customers that fall within the bottlers’/distributors’ sales territories; and (viii) certain commissions paid based on sales to our bottlers/distributors. The presentation of promotional and other allowances facilitates an evaluation of their impact on the determination of net sales and the spending levels incurred or correlated with such sales. Promotional and other allowances for our energy drink products constitute a material portion of our marketing activities. Our promotional allowance programs for our energy drink products with our numerous bottlers/distributors and/or retailers are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, ranging from one week to one year. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.

Sales

The table below discloses selected quarterly data regarding sales for the three-months ended March 31, 2024 and 2023, respectively. Data from any one or more quarters or periods is not necessarily indicative of annual results or continuing trends.

Sales of our energy drinks are expressed in unit case volume. A “unit case” means a unit of measurement equal to 192 U.S. fluid ounces of finished beverage (24 eight-ounce servings). Unit case volume means the number of unit cases (or unit case equivalents) of finished products or concentrates as if converted into finished products sold by us.

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Our quarterly results of operations reflect seasonal trends that are primarily the result of increased demand in the warmer months of the year. Beverage sales tend to be lower during the first and fourth quarters of each calendar year. However, our experience with our energy drink products suggests they are less seasonal than the seasonality expected from traditional beverages. In addition, our continued growth internationally may further reduce the impact of seasonality on our business. Quarterly fluctuations may also be affected by other factors including the introduction of new products, the opening of new markets where temperature fluctuations are more pronounced, the addition of new bottlers/distributors, changes in the sales mix of our products and changes in advertising and promotional expenses.

	Three-Months Ended
(In thousands, except average net sales per case)	March 31,
	2024		2023
Net sales	$	1,899,098	$	1,698,930
Less: Alcohol Brands segment sales		(56,070)		(46,290)
Less: Other segment sales		(5,533)		(4,614)
Adjusted net sales1	$	1,837,495	$	1,648,026
Case sales by segment:1
Monster Energy® Drinks		166,639		151,071
Strategic Brands		44,791		31,373
Total case sales		211,430		182,444
Average net sales per case - Energy Drinks	$	8.69	$	9.03

¹Excludes Alcohol Brands segment and Other segment net sales.

Net changes in foreign currency exchange rates had an unfavorable impact on the overall average net sales per case for the three-months ended March 31, 2024.

The following represents case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents:

	Three-Months Ended
(In thousands, except average net sales per case)	March 31,
	2024		2023
Alcohol Brands segment net sales	$	56,070	$	46,290
Case sales		4,099		3,129
Average net sales per case - Alcohol Brands	$	13.68	$	14.79

See Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations” for additional information related to the increase in sales.

Liquidity and Capital Resources

Cash and cash equivalents, short-term and long-term investments. At March 31, 2024, we had $2.58 billion in cash and cash equivalents, $984.2 million in short-term investments and $8.2 million in long-term investments, including certificates of deposit, commercial paper, U.S. government agency securities, U.S. treasuries and corporate bonds. We maintain our investments for cash management purposes and not for purposes of speculation. Our risk management policies emphasize credit quality (primarily based on short-term ratings by nationally recognized statistical rating organizations) in selecting and maintaining our investments. We regularly assess the market risk of our investments and believe our current policies and investment practices adequately limit those risks. However, certain of these investments are subject to general credit, liquidity, market and interest rate risks. These market risks associated with our investment portfolio may have an adverse effect on our future results of operations, liquidity and financial condition.

Of our $2.58 billion of cash and cash equivalents held at March 31, 2024, $961.5 million was held by our foreign subsidiaries. No short-term or long-term investments were held by our foreign subsidiaries at March 31, 2024.

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We believe that cash available from operations, including our cash resources and access to credit, will be sufficient for our working capital needs, including purchase commitments for raw materials and inventory, increases in accounts receivable, payments of tax liabilities, expansion and development needs, purchases of capital assets, purchases of equipment, purchases of real property and purchases of shares of our common stock, through at least the next 12 months. Based on our current plans, at this time we estimate that capital expenditures (exclusive of common stock repurchases) are likely to be less than $500.0 million through March 31, 2025. However, future business opportunities may cause a change in this estimate.

Purchases of inventories, increases in accounts receivable and other assets, acquisition of property and equipment (including real property, personal property, plant and manufacturing equipment, and coolers), leasehold improvements, advances for or the purchase of equipment for our bottlers, acquisition and maintenance of trademarks, payments of accounts payable, income taxes payable and purchases of our common stock are expected to remain our principal recurring use of cash.

The following summarizes our cash flows for the three-months ended March 31, 2024 and 2023 (in thousands):

Net cash provided by (used in):
	2024		2023
Operating activities	$	412,142	$	424,475
Investing activities	$	(35,322)	$	(52,766)
Financing activities	$	(84,749)	$	(6,049)

Cash flows provided by operating activities. Cash provided by operating activities was $412.1 million for the three-months ended March 31, 2024, as compared with cash provided by operating activities of $424.5 million for the three-months ended March 31, 2023.

For the three-months ended March 31, 2024, cash provided by operating activities was primarily attributable to net income earned of $442.0 million and adjustments for certain non-cash expenses, consisting primarily of $23.7 million of depreciation and amortization and non-cash lease expense and $22.5 million of stock-based compensation. For the three-months ended March 31, 2024, cash provided by operating activities also increased due to a $60.5 million increase in income taxes payable, a $52.8 million increase in accrued promotional allowances, a $28.3 million increase in accrued liabilities, a $22.7 million decrease in inventories and an $11.8 million decrease in prepaid income taxes. For the three-months ended March 31, 2024, cash used in operating activities was primarily attributable to a $195.1 million increase in accounts receivable, a $35.7 million decrease in accrued compensation, a $9.5 million increase in prepaid expenses and other assets, a $9.1 million decrease in accounts payable and a $3.0 million decrease in deferred revenue.

For the three-months ended March 31, 2023, cash provided by operating activities was primarily attributable to net income earned of $397.4 million and adjustments for certain non-cash expenses, consisting of $19.0 million of depreciation and amortization and non-cash lease expense, and $16.1 million of stock-based compensation. For the three-months ended March 31, 2023, cash provided by operating activities also increased due to a $51.1 million increase in accounts payable, a $48.3 million increase in accrued promotional allowances, a $41.6 million increase in income taxes payable, a $35.5 million decrease in inventories, a $14.2 million increase in accrued liabilities, a $4.0 million decrease in prepaid income taxes and a $1.3 million decrease in prepaid expenses and other assets. For the three-months ended March 31, 2023, cash used in operating activities was primarily attributable to a $167.5 million increase in accounts receivable, a $30.3 million decrease in accrued compensation and a $5.0 million decrease in deferred revenue.

Cash flows used in investing activities. Cash used in investing activities was $35.3 million for the three-months ended March 31, 2024 as compared to cash used in investing activities of $52.8 million for the three-months ended March 31, 2023.

For both the three-months ended March 31, 2024 and 2023, cash provided by investing activities was primarily attributable to sales of available-for-sale investments. For both the three-months ended March 31, 2024 and 2023, cash used in investing activities was primarily attributable to purchases of available-for-sale investments. To a lesser extent, for both the three-months ended March 31, 2024 and 2023, cash used in investing activities also included the acquisitions of fixed assets consisting of vans and promotional vehicles, coolers and other equipment to support our marketing and promotional activities, production equipment, furniture and fixtures, office and computer equipment, computer software, equipment used for sales and administrative activities, certain leasehold improvements, as well as acquisitions of and/or construction of and/or improvements to real property. We expect to continue to use a portion of our cash in excess of our requirements for operations for purchasing short-term and long-term investments, leasehold improvements, the acquisition of capital equipment (specifically, vans, trucks and promotional vehicles, coolers, other promotional equipment, merchandise displays, warehousing racks as well as items of production equipment required to produce certain of our existing and/or new products)

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to develop our brand in international markets and for other corporate purposes. From time to time, we may also use cash to purchase additional real property related to our beverage business and/or acquire compatible businesses.

Cash flow used in financing activities. Cash used in financing activities was $84.7 million for the three-months ended March 31, 2024 as compared to cash used in financing activities of $6.0 million for the three-months ended March 31, 2023. The cash used in financing activities for both the three-months ended March 31, 2024 and 2023 was primarily the result of the repurchases of our common stock. The cash provided by financing activities for both the three-months ended March 31, 2024 and 2023 was primarily attributable to the issuance of our common stock under our stock-based compensation plans.

The following represents a summary of the Company’s contractual commitments and related scheduled maturities as of March 31, 2024:

	Payments due by period (in thousands)
			Less than		1‑3		3‑5		More than
Obligations	Total		1 year		years		years		5 years
Contractual Obligations1	$	451,105	$	358,170	$	85,253	$	7,564	$	118
Finance Leases		4,395		4,380		15		—		—
Operating Leases		66,750		2,333		24,178		18,012		22,227
Purchase Commitments2		345,541		338,814		6,566		161		-
	$	867,791	$	703,697	$	116,012	$	25,737	$	22,345

¹Contractual obligations include our obligations related to sponsorships and other commitments.

²Purchase commitments include obligations made by us and our subsidiaries to various suppliers for raw materials used in the production of our products. These obligations vary in terms but are generally satisfied within one year.

In addition, approximately $6.0 million of unrecognized tax benefits have been recorded as liabilities as of March 31, 2024. It is expected that the amount of unrecognized tax benefits will not significantly change within the next 12 months. As of March 31, 2024, we had $0.7 million of accrued interest and penalties related to unrecognized tax benefits.

Critical Accounting Policies and Estimates

Our consolidated financial statements are prepared in accordance with GAAP. GAAP requires us to make estimates and assumptions that affect the reported amounts in our consolidated financial statements. Critical accounting estimates are those that management believes are the most important to the portrayal of our financial condition and results and require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and that have had, or are reasonably likely to have, a material impact on our financial condition or results of operations. Judgments and uncertainties may result in materially different amounts being reported under different conditions or using different assumptions. There have been no material changes to our critical accounting policies or estimates from the information provided in “Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 – Organization and Summary of Significant Accounting Policies”, included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (“Form 10-K”).

Recent Accounting Pronouncements

The information required by this Item is incorporated herein by reference to the Notes to Condensed Consolidated Financial Statements - Note 1. Recent Accounting Pronouncements, in Part I, Item 1, of this Quarterly Report on Form 10-Q.

Inflation

Inflation had an impact on our results of operations for the three-months ended March 31, 2024 primarily due to inflation related local currency price increases in certain international markets.

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Forward-Looking Statements

Certain statements made in this report may constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) (the “Exchange Act”) regarding the expectations of management with respect to revenues, profitability, adequacy of funds from operations and our existing credit facility, among other things. All statements containing a projection of revenues, income (loss), earnings (loss) per share, capital expenditures, dividends, capital structure or other financial items, a statement of management’s plans and objectives for future operations, or a statement of future economic performance contained in management’s discussion and analysis of financial condition and results of operations, including statements related to new products, volume growth and statements encompassing general optimism about future operating results and non-historical information, are forward-looking statements within the meaning of the Exchange Act. Without limiting the foregoing, the words “believes,” “thinks,” “anticipates,” “plans,” “expects,” “estimates” and similar expressions are intended to identify forward-looking statements.

Management cautions that these statements are qualified by their terms and/or important factors, many of which are outside our control and involve a number of risks, uncertainties and other factors, that could cause actual results and events to differ materially from the statements made including, but not limited to, the following:

● The intended commencement of the $3.0 billion tender offer;

● The intended $1.0 billion in combined borrowings, consisting of a new revolving credit facility and a new delayed draw term loan facility, each expected to be consummated prior to the completion of the tender offer;

● Our ability to successfully integrate the Bang Energy® business and recognize the anticipated benefits of the transaction;

● Our ability to successfully transition the acquired Bang Energy® beverages to the Company’s primary bottlers/distributors;

● Our ability to procure shelf space, retain customers and increase sales of the acquired Bang Energy® beverages;

● Our ability to consolidate operations and/or rationalize brands acquired from Monster Brewing Company and Bang Energy®;

● Our ability to achieve profitability within our Alcohol Brands segment;

● Our ability to absorb, mitigate or pass on cost increases to our bottlers/distributors and/or customers and/or consumers;

● The impact of rising costs, interest rates, and inflation on the discretionary income of our consumers;

● Uncertainties associated with an economic slowdown or recession that could negatively impact the financial condition of our customers and could result in a reduced demand for our products;

● The impact of the military conflicts in Ukraine, Israel and Gaza as well as tensions in the Middle East and across the Taiwan Straits, including supply chain disruptions, volatility in commodity and energy prices, increased economic uncertainty and escalating geopolitical tensions;

● Fluctuations in growth and/or growth rates (positive or negative) of the domestic and international energy drink categories generally, including in the convenience and gas channel (which is our largest channel) and the impact on demand for our products resulting from deteriorating economic conditions and/or financial uncertainties;

● Lack of anticipated demand for our products in domestic and/or international markets;

● Our ability to sustain the current level of sales of and/or achieve growth for our Monster Energy®, Reign Total Body Fuel®, Reign Storm®, Bang Energy® and NOS® brand energy drinks and/or our other products, including our Strategic Brands and Alcohol Brands;

● The impact of temporary or permanent facility closures, production slowdowns and disruptions in operations experienced by our manufacturing facilities, our suppliers, bottlers/distributors, co-packers, and/or breweries, including any material disruptions on the production and distribution of our products;

● Disruption to our and/or our co-packers’ manufacturing facilities and operations due to severe weather, natural disasters, climate change, labor-related issues, production difficulties, capacity limitations, cybersecurity incidents or other causes, which could impair our ability to produce or deliver finished products, resulting in a negative impact on our operating results;

● Our ability to modify our manufacturing facilities to comply with safety, health, environmental, and other regulations;

● The consolidation of co-packers leading us to increasingly rely on fewer co-packing groups, certain of which account for a large percentage of our co-packing capacity for our Monster Energy® drinks;

● The impact of logistical issues and delays, including shortages of shipping containers and port of entry congestion;

● We have extensive commercial arrangements with TCCC and, as a result, our future performance is substantially dependent on the success of our relationship with TCCC;

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● The consequence of TCCC’s bottlers/distributors distributing Coca-Cola brand energy drinks, possible reductions in the number of our SKUs carried by such bottlers/distributors and/or such bottlers/distributors imposing limitations on distributing new product SKUs;

● The effect of TCCC being one of our significant stockholders and the potential divergence of TCCC’s interests from those of our other stockholders;

● Our ability to maintain relationships with TCCC system bottlers/distributors and manage their ongoing commitment to focus on our non-alcohol products;

● Disruptions in distribution channels and/or declines in sales due to the termination and/or insolvency of existing and/or new domestic and/or international bottlers/distributors;

● Fluctuations in our inventory levels or those of our bottlers/distributors, planned or otherwise, and the resultant impact on our revenues;

● Unfavorable regulations, including taxation, age restrictions imposed on the sale, purchase, or consumption of our products, marketing restrictions, product registration requirements, tariffs, trade restrictions, container size limitations and/or ingredient restrictions;

● The effect of inquiries from, and/or actions by, state attorneys general, the Federal Trade Commission (the “FTC”), the Food and Drug Administration (the “FDA”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (the “ATF”), municipalities, city attorneys, other government agencies, quasi-government agencies, government officials (including members of the U.S. Congress) and/or analogous central and local agencies and other authorities in the foreign countries in which our products are manufactured and/or distributed into the advertising, marketing, promotion, ingredients, sale and/or consumption of our products, including voluntary and/or required changes to our business practices;

● Our ability to comply with laws, regulations and evolving industry standards regarding consumer privacy and data use and security, including, but not limited to, with respect to the General Data Protection Regulation and the California Consumer Privacy Act of 2018;

● Our ability to achieve profitability and/or repatriate cash from certain of our operations outside the United States;

● Our ability to manage legal and regulatory requirements in foreign jurisdictions, potential difficulties in staffing and managing foreign operations and potentially higher incidence of fraud or corruption and credit risk of foreign customers and/or bottlers/distributors;

● Changes in U.S. tax laws as a result of any legislation proposed by the U.S. Presidential Administration or U.S. Congress, which may include efforts to change or repeal the 2017 Tax Cuts and Jobs Act and the federal corporate income tax rate reduction;

● Our ability to produce our products in international markets in which they are sold, thereby reducing freight costs and/or product damages;

● Our ability to effectively manage our inventories and/or our accounts receivables;

● Our foreign currency exchange rate risk with respect to our sales, expenses, profits, assets and liabilities denominated in currencies other than the U.S. dollar, which will continue to increase as foreign sales increase;

● Changes in accounting standards may affect our reported profitability;

● Implications of the Organization for Economic Cooperation and Development’s base erosion and profit shifting project;

● Any proceedings that may be brought against us by the U.S. Securities and Exchange Commission (the “SEC”), the FDA, the FTC, the ATF or other governmental or quasi-governmental agencies or bodies;

● The outcome and/or possibility of future shareholder derivative actions or shareholder securities litigation that may be filed against us and/or against certain of our officers and directors, and the possibility of other private shareholder litigation;

● The outcome of product liability or consumer fraud litigation and/or class action litigation (or its analog in foreign jurisdictions) regarding the safety of our products and/or the ingredients in our products and/or claims made in connection with our products and/or alleging false advertising, marketing and/or promotion, and the possibility of future product liability and/or class action lawsuits;

● Exposure to significant liabilities due to litigation, legal or regulatory proceedings, including litigation directed at the energy and alcohol beverage industries generally or at the Company in particular;

● Intellectual property injunctions;

● Unfavorable resolution of possible tax matters;

● Uncertainty and volatility in the domestic and global economies, including risk of counterparty default or failure;

41

● Our ability to address any significant deficiencies or material weakness in our internal controls over financial reporting;

● Our ability to continue to generate sufficient cash flows to support our expansion plans and general operating activities;

● Decreased demand for our products resulting from changes in consumer preferences, including, but not limited to: changes in demand for different packages, sizes and configurations; changes due to perceived health concerns such as obesity, ingredients in our products or packaging, and alcohol abuse; changes due to product safety concerns; and/or changes due to decreased consumer discretionary spending power;

● Adverse publicity surrounding obesity, alcohol consumption, and other health concerns related to our products, product safety and quality, water usage, environmental impact and sustainability, human rights, our culture, workforce and labor and workplace laws;

● Our ability to meet or comply with sustainability-related expectations, standards, and regulations, including rules adopted by the SEC, laws implemented by the California legislature, and directives adopted by the European Commission;

● Changes in demand that are weather or season related and/or for other reasons, including changes in product category and/or package consumption;

● Changes in cost and availability of certain key ingredients including aluminum cans, as well as disruptions to the supply chain, as a result of climate change and poor or extreme weather conditions;

● The impact of unstable political conditions, civil unrest, large scale terrorist acts, the outbreak or escalation of armed hostilities, major natural disasters and extreme weather conditions, widespread outbreaks of infectious diseases (such as the COVID-19 pandemic), or unforeseen economic and political changes and local or international catastrophic events;

● The impact on our business of competitive products and pricing pressures and our ability to increase or maintain our market share as a result of actions by competitors, including unsubstantiated and/or misleading claims, false advertising claims and tortious interference, as well as competitors selling misbranded products;

● The impact on our business of trademark and trade dress infringement proceedings brought against us relating to any of our brands, which could result in an injunction barring us from selling certain of our products and/or require changes to be made to our current trade dress;

● Our ability to implement and/or maintain price increases, including through reductions in promotional allowances;

● An inability to achieve volume growth through product and packaging initiatives;

● Our ability to implement our growth strategy, including expanding our business in existing and new sectors, such as the alcohol beverage sector;

● The inherent operational risks presented by the alcohol beverage industry that may not be adequately covered by insurance or lead to litigation relating to alcohol marketing, advertising, or distribution practices, alcohol abuse problems and other health consequences arising from excessive consumption of or other misuse of alcohol, including death;

● Our inability to transition distribution agreements in our Alcohol Brands segment and/or the impact of higher costs to change distributors for our alcohol beverages;

● The impact of criticism of our products and/or the energy drink and/or alcohol beverage markets generally and/or legislation enacted (whether as a result of such criticism or otherwise) that restricts the marketing or sale of energy drinks and/or alcohol beverages (including prohibiting the sale of energy and/or alcohol drinks at certain establishments or pursuant to certain governmental programs), limits caffeine or alcohol content in beverages, requires certain product labeling disclosures and/or warnings, imposes excise and/or sales taxes, limits product sizes and/or imposes age restrictions for the sale of energy and/or alcohol drinks;

● Our ability to comply with and/or resulting lower consumer demand and/or lower profit margins for energy drinks and/or alcohol beverages due to proposed and/or future U.S. federal, state and local laws and regulations and/or proposed or existing laws and regulations in certain foreign jurisdictions and/or any changes therein, including changes in taxation requirements (including tax rate changes, new tax laws, new and/or increased excise, sales and/or other taxes on our products and revised tax law interpretations) and environmental laws, as well as the Federal Food, Drug, and Cosmetic Act and regulations or rules made thereunder or in connection therewith by the FDA. In addition, our business may be adversely impacted by changes in other food, drug or similar laws in the United States and internationally as well as laws and regulations or rules made or enforced by the ATF and/or the FTC or their foreign counterparts;

● Disruptions in the timely import or export of our products and/or ingredients including flavors, flavor ingredients and supplement ingredients due to port congestion, strikes and related labor issues or otherwise;

42

● Our ability to satisfy all criteria set forth in any model energy and/or alcohol drink guidelines, including, without limitation, those adopted by the American Beverage Association, of which we are a member, and/or any international beverage associations and the impact that our failure to satisfy such guidelines may have on our business;

● The effect of unfavorable or adverse public relations, press, articles, comments and/or media attention;

● Changes in the cost, quality and availability of containers, packaging materials, aluminum cans or kegs, the Midwest and other premiums, raw materials, including flavors and flavor ingredients, and other ingredients and juice concentrates, co-packing fees, and our ability to obtain and/or maintain favorable supply arrangements and relationships and procure timely and/or sufficient production of all or any of our products to meet customer demand;

● Any shortages that may be experienced in the procurement of containers and/or other raw materials including, without limitation, water, flavors, flavor ingredients, supplement ingredients, aluminum cans generally, to a limited extent PET containers, 24-ounce aluminum cap cans, 19.2-ounce cans and 550ml BRE aluminum cans with resealable ends;

● Our ability to access, secure and purify sufficient supplies of quality water;

● Limitations in procuring sufficient quantities of aluminum cans;

● In order to secure sufficient quantities of aluminum cans and sufficient co-packing availability in the future, we may be required to commit to minimum purchase volumes and/or minimum co-packing volumes. In the event that we over-estimate future demand for our products and therefore may not purchase such minimum quantities in full, or utilize such minimum co-packing volumes in full, we may incur claims and/or costs or losses in respect of such shortfalls;

● The impact on our cost of sales of corporate activity among the limited number of suppliers from whom we purchase certain raw materials;

● Our ability to pass on to our customers all or a portion of any increases in the costs of raw materials, ingredients, commodities and/or other cost inputs affecting our business;

● Our ability to penetrate new domestic and/or international markets and/or gain approval or mitigate the delay in securing approval for the sale of our products in various countries;

● The effectiveness of sales and/or marketing efforts by us and/or by the bottlers/distributors of our products, most of whom distribute products that may be regarded as competitive with our products;

● Unilateral decisions by bottlers/distributors, buying groups, convenience and gas chains, grocery chains, mass merchandisers, specialty chain stores, e-commerce retailers, e-commerce websites, club stores and other customers to discontinue carrying all or any of our products that they are carrying at any time, restrict the range of our products they carry, impose restrictions or limitations on the sale of our products and/or the sizes of containers of our products and/or devote less resources to the sale of our products;

● The impact of certain activities by competitors and others to persuade regulators and/or retailers and/or customers in certain countries to reduce the permitted or maximum container sizes for our products from those currently being sold and marketed by us;

● The impact of possible trading disputes between our bottler/distributors and their customers and/or one or more buying groups which may result in the delisting of certain of our products, temporarily or otherwise;

● The effects of retailer consolidation on our business and our ability to successfully adapt to the rapidly changing retail landscape, including, but not limited to, competition from new entrants, consolidations by competitors and retailers, and other competitive activities;

● Our ability to adapt to the changing retail landscape with the rapid growth in e-commerce retailers;

● The effects of bottler/distributor consolidation on our business;

● The costs and/or effectiveness, now or in the future, of our sponsorships and endorsements, marketing and promotional strategies;

● The success of our sports marketing, social media and other general marketing endeavors both domestically and internationally;

● Possible product recalls and/or reformulations of certain of our products and/or market withdrawals of certain of our products due to defective packaging and/or non-compliant formulas or production in one or more jurisdictions;

● The failure of our bottlers and/or co-packers to manufacture our products on a timely basis or at all;

● Our ability to make suitable arrangements and/or procure sufficient capacity for the co-packing of any of our products both domestically and internationally, the timely replacement of discontinued co-packing arrangements and/or limitations on co-packing availability, including for retort production;

● Our ability to make suitable arrangements for the timely procurement of non-defective raw materials;

43

● Our inability to protect and/or the loss of our intellectual property rights and/or our inability to use our trademarks, trade names or designs and/or trade dress in certain countries;

● Volatility of stock prices which may restrict stock sales, stock purchases or other opportunities as well as negatively impact the motivation of equity award grantees;

● Provisions in our organizational documents and/or control by insiders which may prevent changes in control even if such changes would be beneficial to other stockholders;

● Any disruption in and/or lack of effectiveness of our information technology systems, including a breach of cyber security, that disrupts our business or negatively impacts customer relationships, as well as cybersecurity incidents involving data shared with or by third parties; and

● Succession plans for and/or the recruitment and retention of senior management, other key employees and our employee base in general.

The foregoing list of important factors and other risks detailed from time to time in our reports filed with the SEC is not exhaustive. See “Part I, Item 1A – Risk Factors” for a more complete discussion of these risks and uncertainties and for other risks and uncertainties. Those factors and the other risk factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results. Consequently, our actual results could be materially different from the results described or anticipated by our forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections and may be better or worse than anticipated. Given these uncertainties, you should not rely on forward-looking statements. Forward-looking statements represent our estimates and assumptions only as of the date that they were made. We expressly disclaim any duty to provide updates to forward-looking statements, and the estimates and assumptions associated with them, after the date of this report, in order to reflect changes in circumstances or expectations or the occurrence of unanticipated events except to the extent required by applicable securities laws.

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our market risks during the three-months ended March 31, 2024 compared with the disclosures in Part II, Item 7A of our Form 10-K.

ITEM 4.    CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures – Under the supervision and with the participation of the Company’s management, including our Co-Chief Executive Officers and Chief Financial Officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13(a)-15(e) and 15(d)-15(e) of the Exchange Act) as of the end of the period covered by this report. Based upon this evaluation, the Co-Chief Executive Officers and Chief Financial Officer have concluded that our disclosure controls and procedures are adequate and effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported within the time periods specified in rules and forms of the SEC and (2) accumulated and communicated to our management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting – There were no changes in the Company’s internal controls over financial reporting during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

44

PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

The information required by this Item is incorporated herein by reference to the Notes to Condensed Consolidated Financial Statements - Note 11. Commitments and Contingencies: Litigation in Part I, Item 1, of this Quarterly Report on Form 10-Q.

ITEM 1A.RISK FACTORS

In addition to the other information set forth in this Quarterly Report on Form 10-Q, including Management’s Discussion and Analysis of Financial Condition and Results of Operations and the condensed consolidated financial statements and related notes, you should carefully consider the risks discussed in “Part I, Item 1A – Risk Factors” in our Form 10-K. If any of these risks occur or continue to occur, our business, reputation, financial condition and/or operating results could be materially adversely affected. We also note that the risk factors described in this report and our Form 10-K are not the only risks facing our Company, and such additional risks or uncertainties that we currently deem to be immaterial or are unknown to us could negatively impact our business, operations, or financial results.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On November 2, 2022, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “November 2022 Repurchase Plan”). During the three-months ended March 31, 2024, the Company purchased approximately 1.8 million shares of common stock at an average purchase price of $54.96 per share, for a total amount of approximately $97.2 million (excluding broker commissions), under the November 2022 Repurchase Plan. As of May 7, 2024, $142.4 million remained available for repurchase under the November 2022 Repurchase Plan.

On November 7, 2023, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “November 2023 Repurchase Plan”). During the three-months ended March 31, 2024, no shares were repurchased under the November 2023 Repurchase Plan. As of May 7, 2024, $500.0 million remained available for repurchase under the November 2023 Repurchase Plan.

The aggregate amount of the Company’s outstanding common stock that remains available for repurchase under all previously authorized repurchase plans is $642.4 million as of May 7, 2024.

During the three-months ended March 31, 2024, 0.4 million shares of common stock were purchased from employees in lieu of cash payments for options exercised or withholding taxes due for a total amount of $23.0 million. While such purchases are considered common stock repurchases, they are not counted as purchases against the Company’s authorized share repurchase programs. Such shares are included in common stock in treasury in the accompanying consolidated balance sheet at March 31, 2024.

The following tabular summary reflects the Company’s repurchase activity during the quarter ended March 31, 2024.

					Maximum Number (or
					Approximate Dollar
				Total Number of	Value) of Shares that
				Shares Purchased	May Yet Be Purchased
	Total Number			as Part of Publicly	Under the Plans or
	of Shares	Average Price		Announced Plans	Programs (In
Period	Purchased	per Share¹		or Programs	thousands)²
Jan 1 – Jan 31, 2024	749,534	$	54.97	749,534	$	698,426
Feb 1 – Feb 29, 2024	1,019,399	$	54.94	1,019,399	$	642,400
Mar 1 – Mar 31, 2024	—	$	—	—	$	642,400

¹Excluding broker commissions paid.

²Net of broker commissions paid.

45

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.OTHER INFORMATION

During the three-months ended March 31, 2024, none of the Company’s directors or officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (each as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934, as amended).

ITEM 6.EXHIBITS

3.1	Second Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to our Form 8-K dated June 27, 2023).
3.2	Third Amended and Restated By-laws of the Company (incorporated by reference to Exhibit 3.2 to our Form 8-K dated June 27, 2023).
31.1*	Certification of Co-Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Co-Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.3*	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification of Co-Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*	Certification of Co-Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.3*	Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101*	The following financial information from Monster Beverage Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023, (ii) Condensed Consolidated Statements of Income for the three-months ended March 31, 2024 and 2023, (iii) Condensed Consolidated Statements of Comprehensive Income for the three-months ended March 31, 2024 and 2023, (iv) Condensed Consolidated Statements of Stockholders’ Equity for the three-months ended March 31, 2024 and 2023, (v) Condensed Consolidated Statements of Cash Flows for the three-months ended March 31, 2024 and 2023, and (vi) the Notes to Condensed Consolidated Financial Statements.
104*	The cover page from Monster Beverage Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, formatted in iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101.

*    Filed herewith

46

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	MONSTER BEVERAGE CORPORATION
	Registrant
Date: May 7, 2024	/s/ RODNEY C. SACKS
	Rodney C. Sacks
	Chairman of the Board of Directors
	and Co-Chief Executive Officer
Date: May 7, 2024	/s/ HILTON H. SCHLOSBERG
	Hilton H. Schlosberg
	Vice Chairman of the Board of Directors
	and Co-Chief Executive Officer

47

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO RULE 13A-14(a) OR 15D-14(a) OF THE SECURITIES

EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Rodney Sacks, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Monster Beverage Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.   The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 7, 2024	/s/ Rodney C. Sacks
		Rodney C. Sacks Chairman of the Board of Directors and Co-Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO RULE 13A-14(a) OR 15D-14(a) OF THE SECURITIES

EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Hilton Schlosberg, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Monster Beverage Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 7, 2024	/s/ Hilton H. Schlosberg
		Hilton H. Schlosberg Vice Chairman of the Board of Directors and Co-Chief Executive Officer

EX-31.3

EXHIBIT 31.3

CERTIFICATION PURSUANT TO RULE 13A-14(a) OR 15D-14(a) OF THE SECURITIES

EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Thomas Kelly, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Monster Beverage Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 7, 2024	/s/ Thomas J. Kelly
		Thomas J. Kelly Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Monster Beverage Corporation (the “Company”) on Form 10-Q for the quarter ended March 31, 2024 as filed with the Securities and Exchange Commission (the “Report”), the undersigned, Rodney C. Sacks, Chairman of the Board of Directors and Co-Chief Executive Officer of the Company, certifies, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 7, 2024	/s/ Rodney C. Sacks
		Rodney C. Sacks Chairman of the Board of Directors and Co-Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Monster Beverage Corporation (the “Company”) on Form 10-Q for the quarter ended March 31, 2024 as filed with the Securities and Exchange Commission (the “Report”), the undersigned, Hilton H. Schlosberg, Vice Chairman of the Board of Directors and Co-Chief Executive Officer of the Company, certifies, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 7, 2024	/s/ Hilton H. Schlosberg
		Hilton H. Schlosberg Vice Chairman of the Board of Directors and Co-Chief Executive Officer

EX-32.3

EXHIBIT 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Monster Beverage Corporation (the “Company”) on Form 10-Q for the quarter ended March 31, 2024 as filed with the Securities and Exchange Commission (the “Report”), the undersigned, Thomas J. Kelly, Chief Financial Officer of the Company, certifies, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 7, 2024	/s/ Thomas J. Kelly
		Thomas J. Kelly Chief Financial Officer

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	Apr. 26, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Entity File Number	001-18761
Entity Registrant Name	MONSTER BEVERAGE CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-1809393
Entity Address, Address Line One	1 Monster Way
Entity Address, City or Town	Corona
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92879
City Area Code	951
Local Phone Number	739 - 6200
Title of 12(b) Security	Common Stock
Trading Symbol	MNST
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,041,728,228
Entity Central Index Key	0000865752
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
CURRENT ASSETS:
Cash and cash equivalents	$ 2,576,524	$ 2,297,675
Short-term investments	984,201	955,605
Accounts receivable, net	1,370,239	1,193,964
Inventories	939,630	971,406
Prepaid expenses and other current assets	124,580	116,195
Prepaid income taxes	40,340	54,151
Total current assets	6,035,514	5,588,996
INVESTMENTS	8,162	76,431
PROPERTY AND EQUIPMENT, net	923,290	890,796
DEFERRED INCOME TAXES, net	175,271	175,003
GOODWILL	1,417,941	1,417,941
OTHER INTANGIBLE ASSETS, net	1,430,762	1,427,139
OTHER ASSETS	107,126	110,216
Total Assets	10,098,066	9,686,522
CURRENT LIABILITIES:
Accounts payable	533,729	564,379
Accrued liabilities	204,679	183,988
Accrued promotional allowances	318,895	269,061
Deferred revenue	43,776	41,914
Accrued compensation	52,638	87,392
Income taxes payable	75,111	14,955
Total current liabilities	1,228,828	1,161,689
DEFERRED REVENUE	198,759	204,251
OTHER LIABILITIES	92,690	91,838
COMMITMENTS AND CONTINGENCIES (Note 11)
STOCKHOLDERS' EQUITY:
Common stock - $0.005 par value; 5,000,000 shares authorized; 1,124,870 shares issued and 1,041,698 shares outstanding as of March 31, 2024; 1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023	5,624	5,613
Additional paid-in capital	5,034,948	4,975,115
Retained earnings	6,381,785	5,939,736
Accumulated other comprehensive loss	(157,940)	(125,337)
Common stock in treasury, at cost; 83,172 shares and 81,021 shares as of March 31, 2024 and December 31, 2023, respectively	(2,686,628)	(2,566,383)
Total stockholders' equity	8,577,789	8,228,744
Total Liabilities and Stockholders' Equity	$ 10,098,066	$ 9,686,522

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2024	Dec. 31, 2023
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares issued	1,124,870	1,122,592
Common stock, shares outstanding	1,041,698	1,041,571
Common stock in treasury, shares	83,172	81,021

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
NET SALES	$ 1,899,098	$ 1,698,930
COST OF SALES	871,969	801,081
GROSS PROFIT	1,027,129	897,849
OPERATING EXPENSES	485,138	412,785
OPERATING INCOME	541,991	485,064
INTEREST and OTHER INCOME, net	35,754	12,496
INCOME BEFORE PROVISION FOR INCOME TAXES	577,745	497,560
PROVISION FOR INCOME TAXES	135,696	100,116
NET INCOME	$ 442,049	$ 397,444
NET INCOME PER COMMON SHARE:
Basic (in dollar per share)	$ 0.42	$ 0.38
Diluted (in dollar per share)	$ 0.42	$ 0.38
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:
Basic (in shares)	1,041,081	1,044,909
Diluted (in shares)	1,051,282	1,059,069

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income, as reported	$ 442,049	$ 397,444
Other comprehensive income (loss):
Change in foreign currency translation adjustment	(30,695)	7,981
Available-for-sale investments:
Change in net unrealized gain (loss) on available-for-sale investments	223	3,181
Change in net gain (loss) on commodity derivatives	(2,131)	0
Other comprehensive income (loss)	(32,603)	11,162
Comprehensive income	$ 409,446	$ 408,606

XML

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Treasury stock	Total
Balance at Dec. 31, 2022	$ 6,418	$ 4,776,804	$ 9,001,173	$ (159,073)	$ (6,600,281)	$ 7,025,041
Balance (in shares) at Dec. 31, 2022	1,283,688				(239,088)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Stock-based compensation		15,743				15,743
Stock options/awards	$ 19	36,329				36,348
Stock options/awards (in shares)	3,704
Unrealized gain (loss), net on available-for-sale securities				3,181		3,181
Retirement of treasury stock	$ (850)	425	(4,692,425)		$ 4,692,850
Retirement of treasury stock (in shares)	(170,000)				170,000
Repurchase of common stock					$ (90,378)	(90,378)
Repurchase of common stock (in shares)					(1,688)
Foreign currency translation				7,981		7,981
Change in net gain (loss) on commodity derivatives						0
Net income			397,444			397,444
Balance at Mar. 31, 2023	$ 5,587	4,829,301	4,706,192	(147,911)	$ (1,997,809)	7,395,360
Balance (in shares) at Mar. 31, 2023	1,117,392				(70,776)
Balance at Dec. 31, 2023	$ 5,613	4,975,115	5,939,736	(125,337)	$ (2,566,383)	8,228,744
Balance (in shares) at Dec. 31, 2023	1,122,592				(81,021)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Stock-based compensation		21,452				21,452
Stock options/awards	$ 11	38,381				38,392
Stock options/awards (in shares)	2,278
Unrealized gain (loss), net on available-for-sale securities				223		223
Repurchase of common stock					$ (120,245)	(120,245)
Repurchase of common stock (in shares)					(2,151)
Foreign currency translation				(30,695)		(30,695)
Change in net gain (loss) on commodity derivatives				(2,131)		(2,131)
Net income			442,049			442,049
Balance at Mar. 31, 2024	$ 5,624	$ 5,034,948	$ 6,381,785	$ (157,940)	$ (2,686,628)	$ 8,577,789
Balance (in shares) at Mar. 31, 2024	1,124,870				(83,172)

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 442,049	$ 397,444
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	20,475	16,808
Non-cash lease expense	3,185	2,160
Gain on disposal of property and equipment	(177)	(385)
Stock-based compensation	22,472	16,051
Deferred income taxes	9	0
Effect on cash of changes in operating assets and liabilities:
Accounts receivable	(195,081)	(167,512)
Inventories	22,708	35,495
Prepaid expenses and other assets	(9,507)	1,273
Prepaid income taxes	11,840	3,986
Accounts payable	(9,062)	51,124
Accrued liabilities	28,259	14,207
Accrued promotional allowances	52,814	48,265
Accrued compensation	(35,653)	(30,261)
Income taxes payable	60,512	41,617
Other liabilities	335	(751)
Deferred revenue	(3,036)	(5,046)
Net cash provided by operating activities	412,142	424,475
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of available-for-sale investments	382,125	522,501
Purchases of available-for-sale investments	(342,228)	(518,751)
Purchases of property and equipment	(66,044)	(40,100)
Proceeds from sale of property and equipment	422	564
Additions to intangibles	(8,612)	(3,952)
Increase in other assets	(985)	(13,028)
Net cash used in investing activities	(35,322)	(52,766)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on debt	(2,896)	(7,271)
Issuance of common stock	38,392	36,348
Purchases of common stock held in treasury	(120,245)	(35,126)
Net cash used in financing activities	(84,749)	(6,049)
Effect of exchange rate changes on cash and cash equivalents	(13,222)	(141)
NET INCREASE IN CASH AND CASH EQUIVALENTS	278,849	365,519
CASH AND CASH EQUIVALENTS, beginning of period	2,297,675	1,307,141
CASH AND CASH EQUIVALENTS, end of period	2,576,524	1,672,660
Cash paid during the period for:
Interest	91	96
Income taxes	$ 63,634	$ 56,985

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS
Accrued liabilities for intangible assets	$ 11.7	$ 9.6
Accounts payable for purchases of equipment	3.2	$ 2.5
Accounts receivable related to available-for-sale short-term investment sales	3.0
Accured liabilities purchased from employees	$ 55.3

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BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2024

BASIS OF PRESENTATION

BASIS OF PRESENTATION

1. BASIS OF PRESENTATION

Reference is made to the Notes to Consolidated Financial Statements, in Monster Beverage Corporation and Subsidiaries (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2023 for a summary of significant accounting policies utilized by the Company and its consolidated subsidiaries and other disclosures, which should be read in conjunction with this Quarterly Report on Form 10-Q (“Form 10-Q”).

The Company’s condensed consolidated financial statements included in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) rules and regulations applicable to interim financial reporting. They do not include all the information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP. The information set forth in these interim condensed consolidated financial statements for the three-months ended March 31, 2024 and 2023, respectively, is unaudited and reflects all adjustments, which include only normal recurring adjustments and which in the opinion of management are necessary to make the interim condensed consolidated financial statements not misleading. Results of operations for periods covered by this report may not necessarily be indicative of results of operations for the full year.

The preparation of financial statements in conformity with GAAP necessarily requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

Recent Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU No. 2023-07 are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact ASU No. 2023-07 will have on its consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update primarily require more detailed disclosures related to the rate reconciliation and income taxes paid. The amendments in ASU No. 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact ASU No. 2023-09 will have on its consolidated financial statements.

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REVENUE RECOGNITION

3 Months Ended

Mar. 31, 2024

REVENUE RECOGNITION

REVENUE RECOGNITION

2. REVENUE RECOGNITION

Revenues are accounted for in accordance with FASB Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as the Company’s affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment (“Alcohol Brands”), which is comprised of various craft beers, hard seltzers and flavored malt beverages (“FMBs”) and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors, LLC, a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).

The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers and full service beverage distributors (“bottlers/distributors”). In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors.

The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, hard seltzers and FMBs primarily to beer distributors in the United States.

The majority of the Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products to a customer. Control is generally transferred when the Company’s products are either shipped or delivered based on the terms contained within the underlying contracts or agreements. Certain of the Company’s bottlers/distributors may also perform a separate function as a co-packer on the Company’s behalf. In such cases, control of the Company’s products passes to such bottlers/distributors when they notify the Company that they have taken possession or transferred the relevant portion of the Company’s finished goods. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations as of March 31, 2024 and December 31, 2023.

The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers.

Distribution expenses to transport the Company’s products, where applicable, and warehousing expenses after manufacture are accounted for within operating expenses.

Promotional and other allowances (variable consideration) recorded as a reduction to net sales for the Company’s energy drink products primarily include consideration given to the Company’s non-alcohol bottlers/distributors or retail customers, including, but not limited to, the following:

● discounts granted off list prices to support price promotions to end-consumers by retailers;

● reimbursements given to the Company’s bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products;

● the Company’s agreed share of fees given to bottlers/distributors and/or directly to retailers for advertising, in-store marketing and promotional activities;

● the Company’s agreed share of slotting, shelf space allowances and other fees given directly to retailers, club stores and/or wholesalers;

● incentives given to the Company’s bottlers/distributors and/or retailers for achieving or exceeding certain predetermined sales goals;

● discounted or free products;

● contractual fees given to the Company’s bottlers/distributors related to sales made directly by the Company to certain customers that fall within the bottlers’/distributors’ sales territories; and

● commissions to TCCC based on the Company’s sales to wholly-owned subsidiaries of TCCC (the “TCCC Subsidiaries”) and/or to TCCC bottlers/distributors accounted for under the equity method by TCCC (the “TCCC Related Parties”).

The Company’s promotional allowance programs for its energy drink products are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, typically ranging from one week to one year. The Company’s promotional and other allowances for its energy drink products are calculated based on various programs with bottlers/distributors and retail customers, and accruals are established at the time of initial product sale for the Company’s anticipated liabilities. These accruals are based on agreed upon terms as well as the Company’s historical experience with similar programs and require management’s judgment with respect to estimating consumer participation and/or bottler/distributor and retail customer performance levels. Differences between such estimated expenses and actual

expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.

Amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors relating to the costs associated with terminating the Company’s prior distributors, are accounted for as deferred revenue and recognized as revenue ratably over the anticipated life of the respective distribution agreements, generally over 20 years.

The Company also enters into license agreements that generate revenues associated with third-party sales of non-beverage products bearing the Company’s trademarks including, but not limited to, clothing, hats, t-shirts, jackets, helmets and automotive wheels.

Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company’s historical experience.

Disaggregation of Revenue

The following tables disaggregate the Company’s revenue by geographical markets and reportable segments:

	Three-Months Ended March 31, 2024
							Latin
					Asia Pacific		America
	U.S. and				(including		and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	1,094,846	$	352,229	$	122,018	$	159,958	$	1,729,051
Strategic Brands		49,642		43,337		9,197		6,268		108,444
Alcohol Brands		56,070		—		—		—		56,070
Other		5,533		—		—		—		5,533
Total Net Sales	$	1,206,091	$	395,566	$	131,215	$	166,226	$	1,899,098

	Three-Months Ended March 31, 2023
							Latin
					Asia Pacific		America
	U.S. and				(including		and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	1,021,328	$	277,111	$	121,994	$	141,235	$	1,561,668
Strategic Brands		43,043		30,951		8,983		3,381		86,358
Alcohol Brands		46,290		—		—		—		46,290
Other		4,614		—		—		—		4,614
Total Net Sales	$	1,115,275	$	308,062	$	130,977	$	144,616	$	1,698,930

¹Europe, Middle East and Africa (“EMEA”)

Contract Liabilities

Amounts received from certain bottlers/distributors at inception of their distribution contracts or at the inception of certain sales/marketing programs are accounted for as deferred revenue. As of March 31, 2024, the Company had $242.5 million of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheet. As of December 31, 2023, the Company had $246.2 million of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheet. During both the three-months ended March 31, 2024 and 2023, $9.9 million of deferred revenue was recognized in net sales. See Note 10.

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LEASES

3 Months Ended

Mar. 31, 2024

LEASES

LEASES

3. LEASES

The Company leases identified assets consisting primarily of office and warehouse space, warehouse equipment and vehicles. Leases are classified as either finance leases or operating leases based on criteria in ASC 842, “Leases”. The Company’s leases have remaining lease terms of less than one year to 10 years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year.

The components of lease cost were as follows:

	Three-Months Ended March 31,
	2024		2023
Operating lease cost	$	3,802	$	2,467
Short-term lease cost		2,670		979
Variable lease cost		213		215
Finance leases:
Amortization of right-of-use assets		595		123
Interest on lease liabilities		91		14
Finance lease cost		686		137
Total lease cost	$	7,371	$	3,798

Supplemental cash flow information was as follows:

	Three-Months Ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	3,607	$	2,391
Operating cash outflows from finance leases		91		14
Financing cash outflows from finance leases		2,897		598
Right-of-use assets obtained in exchange for lease obligations:
Finance leases		747		2,227
Operating leases		1,091		313

Supplemental balance sheet information was as follows:

		March 31,		December 31,
	Balance Sheet Location	2024		2023
Operating leases:
Right-of-use assets	Other assets	$	56,421	$	58,845
Current lease liabilities	Accrued liabilities	$	11,122	$	11,088
Noncurrent lease liabilities	Other liabilities		46,474		48,459
Total operating lease liabilities		$	57,596	$	59,547
Finance leases:
Right-of-use assets	Property and equipment, net	$	10,091	$	11,147
Current lease liabilities	Accrued liabilities	$	4,297	$	6,449
Noncurrent lease liabilities	Other liabilities		14		19
Total finance lease liabilities		$	4,311	$	6,468

Weighted-average remaining lease term and weighted-average discount rate for the Company’s leases were as follows:

	March 31, 2024		December 31, 2023
Weighted-average remaining lease term in years:
Operating leases	6.2		6.3
Finance leases	0.5		0.7
Weighted-average discount rate:
Operating leases	4.7	%	4.7	%
Finance leases	6.3	%	6.3	%

The following table outlines maturities of the Company’s lease liabilities as of March 31, 2024:

	Undiscounted Future Lease Payments
	Operating Leases		Finance Leases
2024 (from April 1, 2024 to December 31, 2024)	$	10,213	$	4,275
2025		11,942		118
2026		9,824		2
2027		9,242		—
2028		7,709		—
2029 and thereafter		17,820		—
Total lease payments		66,750		4,395
Less imputed interest		(9,154)		(84)
Total	$	57,596	$	4,311

As of March 31, 2024, the Company did not have any significant leases that had not yet commenced.

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INVESTMENTS

3 Months Ended

Mar. 31, 2024

INVESTMENTS

INVESTMENTS

4. INVESTMENTS

The following table summarizes the Company’s investments at:

									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
March 31, 2024	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	157,074	$	11	$	—	$	157,085	$	—	$	—
Certificates of deposit		24,831		—		—		24,831		—		—
U.S. government agency securities		101,893		16		54		101,855		54		—
U.S. treasuries		530,697		23		390		530,330		390		—
Corporate bonds		170,198		32		130		170,100		130		—
Long-term:
Corporate bonds		8,205		—		43		8,162		43		—
Total	$	992,898	$	82	$	617	$	992,363	$	617	$	—

									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
December 31, 2023	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	163,775	$	—	$	1	$	163,774	$	1	$	—
Certificates of deposit		15,590		—		—		15,590		—		—
Municipal securities		361		—		—		361		—		—
U.S. government agency securities		116,524		90		66		116,548		66		—
U.S. treasuries		412,936		205		1,084		412,057		1,084		—
Corporate bonds		247,340		89		154		247,275		154		—
Long-term:
U.S. government agency securities		23,485		51		5		23,531		5		—
U.S. treasuries		35,896		79		8		35,967		8		—
Corporate bonds		16,903		32		2		16,933		2		—
Total	$	1,032,810	$	546	$	1,320	$	1,032,036	$	1,320	$	—

During the three-months ended March 31, 2024 and 2023, realized gains or losses recognized on the sale of investments were not significant.

The Company’s investments at March 31, 2024 and December 31, 2023 carried investment grade credit ratings.

The following table summarizes the underlying contractual maturities of the Company’s investments at:

	March 31, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	157,074	$	157,085	$	163,775	$	163,774
Municipal securities		—		—		361		361
U.S. government agency securities		101,893		101,855		116,524		116,548
Certificates of deposit		24,831		24,831		15,590		15,590
U.S. treasuries		530,697		530,330		412,936		412,057
Corporate bonds		170,198		170,100		247,340		247,275
Due 1 - 10 years:
U.S. treasuries		—		—		35,896		35,967
U.S. government agency securities		—		—		23,485		23,531
Corporate bonds		8,205		8,162		16,903		16,933
Total	$	992,898	$	992,363	$	1,032,810	$	1,032,036

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FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

3 Months Ended

Mar. 31, 2024

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

5. FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

ASC 820, “Fair Value Measurement”, provides a framework for measuring fair value and requires disclosures regarding fair value measurements. ASC 820 defines fair value as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The three levels of inputs required by the standard that the Company uses to measure fair value are summarized below.

● Level 1: Quoted prices in active markets for identical assets or liabilities.

● Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

● Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

ASC 820 requires the use of observable market inputs (quoted market prices) when measuring fair value and requires a Level 1 quoted price to be used to measure fair value whenever possible.

The following tables present the fair value of the Company’s financial assets and liabilities that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy at:

March 31, 2024	Level 1		Level 2		Level 3		Total
Cash	$	973,260	$	—	$	—	$	973,260
Money market funds		1,026,552		—		—		1,026,552
Certificates of deposit		—		74,208		—		74,208
Commercial paper		—		193,959		—		193,959
Corporate bonds		—		205,924		—		205,924
U.S. government agency securities		—		146,214		—		146,214
U.S. treasuries		—		948,770		—		948,770
Foreign currency derivatives		—		(591)		—		(591)
Commodity derivatives		—		2,279		—		2,279
Total	$	1,999,812	$	1,570,763	$	—	$	3,570,575
Amounts included in:
Cash and cash equivalents	$	1,999,812	$	576,712	$	—	$	2,576,524
Short-term investments		—		984,201		—		984,201
Accounts receivable, net		—		2,981		—		2,981
Other assets		—		332		—		332
Investments		—		8,162		—		8,162
Accrued liabilities		—		(1,625)		—		(1,625)
Total	$	1,999,812	$	1,570,763	$	—	$	3,570,575

December 31, 2023	Level 1		Level 2		Level 3		Total
Cash	$	1,105,701	$	—	$	—	$	1,105,701
Money market funds		960,873		—		—		960,873
Certificates of deposit		—		33,824		—		33,824
Commercial paper		—		163,774		—		163,774
Corporate bonds		—		264,208		—		264,208
Municipal securities		—		361		—		361
U.S. government agency securities		—		159,585		—		159,585
U.S. treasuries		—		641,385		—		641,385
Foreign currency derivatives		—		(1,083)		—		(1,083)
Commodity derivatives		—		4,410		—		4,410
Total	$	2,066,574	$	1,266,464	$	—	$	3,333,038
Amounts included in:
Cash and cash equivalents	$	2,066,574	$	231,101	$	—	$	2,297,675
Short-term investments		—		955,605		—		955,605
Accounts receivable, net		—		4,618		—		4,618
Other assets		—		316		—		316
Investments		—		76,431		—		76,431
Accrued liabilities		—		(1,607)		—		(1,607)
Total	$	2,066,574	$	1,266,464	$	—	$	3,333,038

All of the Company’s short-term and long-term investments are classified within Level 1 or Level 2 of the fair value hierarchy. The Company’s valuation of its Level 1 investments is based on quoted market prices in active markets for identical securities. The Company’s valuation of its Level 2 investments is based on other observable inputs, specifically a market approach which utilizes valuation models, pricing systems, mathematical tools and other relevant information for the same or similar securities. The Company’s valuation of its Level 2 foreign currency exchange contracts is based on quoted market prices of the same or similar instruments, adjusted

for counterparty risk. There were no transfers between Level 1 and Level 2 measurements during the three-months ended March 31, 2024, or during the year-ended December 31, 2023, and there were no changes in the Company’s valuation techniques.

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

3 Months Ended

Mar. 31, 2024

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company accounts for its derivative instruments and hedging activities under ASC 815, “Derivatives and Hedging.” The following table presents the fair values of the Company’s derivative instruments:

	Fair value
	March 31,		December 31,
Derivatives designated as hedging instruments	2024		2023		Balance Sheet location
Assets:
Commodity contracts	$	2,379	$	4,480	Accounts receivable, net
Commodity contracts	$	332	$	316	Other assets
Liabilities:
Commodity contracts	$	(432)	$	(386)	Accrued liabilities

	Fair value
	March 31,		December 31,
Derivatives not designated as hedging instruments	2024		2023		Balance Sheet location
Assets:
Foreign currency exchange contracts	$	602	$	138	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts	$	(1,193)	$	(1,221)	Accrued liabilities

Cash Flow Hedging Strategy

The Company uses cash flow hedges to minimize the variability in cash flows of forecasted transactions caused by fluctuations in commodity prices. The changes in the fair values of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”) and are reclassified into the line item in our condensed consolidated statement of income in which the hedged items are recorded in the same period that the hedged items affect earnings. The changes in the fair values of hedges that are determined to be ineffective are immediately reclassified from AOCI into earnings. The maximum length of time for which the Company hedges its exposure to the variability in future cash flows is currently less than two years.

The Company has entered into commodity hedge contracts to mitigate the price risk associated with a portion of its forecasted aluminum purchases. These derivative instruments were designated as part of the Company’s commodity cash flow hedging program. The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of aluminum. The total notional values of derivatives that were designated and qualified for this program were $126.1 million and $98.3 million as of March 31, 2024 and December 31, 2023, respectively. Transactions under the commodity cash flow hedging program were executed beginning in May 2023.

The following table presents the impact that changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income (“OCI”), AOCI and earnings:

Three-months ended March 31, 2024
Derivatives				Gain (loss)
designated as	Gain (loss) recognized		Location of gain (loss)	reclassified from
hedging instruments	in AOCI		recognized in income	AOCI into income
Commodity contracts	$	2,279	Cost of sales	$	(966)

As of March 31, 2024, the Company estimates that it will reclassify into earnings net gains (losses) of $1.9 million from the amount recorded in AOCI as the anticipated cash flows occur during the next 12 months.

Economic (Non-Designated) Hedging Strategy

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the three-months ended March 31, 2024 and 2023, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries’ non-functional currency denominated assets and liabilities. All foreign currency exchange contracts of the Company that were outstanding as of March 31, 2024 have terms of approximately one month or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

The Company has not designated its foreign currency exchange contracts as hedge transactions. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in interest and other income (expense), net, in the condensed consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. The total notional values of derivatives related to our foreign currency economic hedges were $230.5 million and $282.7 million as of March 31, 2024 and December 31, 2023, respectively.

The net gains (losses) on derivatives not designated as hedging instruments in the condensed consolidated statements of income were as follows:

		Gain (loss)
		recognized in income on
		derivatives
		Three-months ended
Derivatives not designated as	Location of gain (loss)	March 31,		March 31,
hedging instruments	recognized in income on derivatives	2024		2023
Foreign currency exchange contracts	Interest and other income, net	$	5,343	$	(7,852)

Certain of the Company’s counterparty agreements contain provisions that require the Company to post collateral on derivative instruments in a net liability position. As of March 31, 2024, $0.6 million was posted as collateral.

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INVENTORIES

3 Months Ended

Mar. 31, 2024

INVENTORIES

INVENTORIES

7. INVENTORIES

Inventories consist of the following at:

	March 31,		December 31,
	2024		2023
Raw materials	$	285,966	$	330,021
Work in process		1,601		1,403
Finished goods		652,063		639,982
	$	939,630	$	971,406

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PROPERTY AND EQUIPMENT, NET

3 Months Ended

Mar. 31, 2024

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

8. PROPERTY AND EQUIPMENT, NET

Property and equipment consist of the following at:

	March 31,		December 31,
	2024		2023
Land	$	153,340	$	152,253
Leasehold improvements		38,159		37,946
Furniture and fixtures		11,401		11,422
Office and computer equipment		26,421		25,560
Computer software		5,053		5,344
Equipment		449,321		426,466
Buildings		212,359		211,951
Vehicles		69,937		69,527
Assets under construction		234,627		211,562
		1,200,618		1,152,031
Less: accumulated depreciation and amortization		(277,328)		(261,235)
	$	923,290	$	890,796

Total depreciation and amortization expense was $19.2 million and $14.8 million for the three-months ended March 31, 2024 and 2023, respectively.

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GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2024

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

9.GOODWILL AND OTHER INTANGIBLE ASSETS

The following is a roll-forward of goodwill for the three-months ended March 31, 2024 and 2023 by reportable segment:

	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Balance at December 31, 2023	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941
Acquisitions		—		—		—		—		—
Balance at March 31, 2024	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941

	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Balance at December 31, 2022	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941
Acquisitions		—		—		—		—		—
Balance at March 31, 2023	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941

Intangible assets consist of the following at:

	March 31,		December 31,
	2024		2023
Amortizing intangibles	$	144,378	$	144,582
Accumulated amortization		(75,982)		(74,699)
		68,396		69,883
Non-amortizing intangibles		1,362,366		1,357,256
	$	1,430,762	$	1,427,139

Amortizing intangibles primarily consist of customer relationships. All amortizing intangibles have been assigned an estimated finite useful life and such intangibles are amortized on a straight-line basis over the number of years that approximate their respective useful lives, generally ten to fifteen years. Total amortization expense was $1.3 million and $2.0 million for the three-months ended March 31, 2024 and 2023, respectively.

The following is the future estimated amortization expense related to amortizing intangibles as of March 31, 2024:

2024 (from April 1, 2024 to December 31, 2024)	$	4,461
2025		5,947
2026		5,947
2027		5,946
2028		5,945
2029 and thereafter		40,150
	$	68,396

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DISTRIBUTION AGREEMENTS

3 Months Ended

Mar. 31, 2024

DISTRIBUTION AGREEMENTS

DISTRIBUTION AGREEMENTS

10. DISTRIBUTION AGREEMENTS

In the normal course of business, amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, or at the inception of certain sales/marketing programs are accounted for as deferred revenue and are recognized as revenue ratably over the anticipated life of the respective agreement, generally 20 years or program duration, as the case may be. Revenue recognized was $9.9 million for both the three-months ended March 31, 2024 and 2023.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2024

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

11. COMMITMENTS AND CONTINGENCIES

The Company had purchase commitments aggregating approximately $345.5 million at March 31, 2024, which represented commitments made by the Company and its subsidiaries to various suppliers of raw materials for the production of its products. These obligations vary in terms but are generally satisfied within one year.

The Company had contractual obligations aggregating approximately $451.1 million at March 31, 2024, which related primarily to sponsorships and other marketing activities.

The Company has a credit facility with HSBC Bank (China) Company Limited, Shanghai Branch, of $15.0 million. At March 31, 2024, the interest rate on borrowings under the line of credit was 5.5%. As of March 31, 2024, no amount was outstanding on this line of credit.

Litigation — From time to time in the normal course of business, the Company is named in litigation, including labor and employment matters, personal injury matters, consumer class actions, intellectual property matters and claims from prior distributors. Although it is not possible to predict the ultimate outcome of such litigation, based on the facts known to the Company, management believes that such litigation in aggregate will likely not have a material adverse effect on the Company’s financial position or results of operations.

The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that is accrued, if any, and any related insurance reimbursements. As of March 31, 2024 and December 31, 2023, $0.3 million of loss contingencies were included in the Company’s accompanying condensed consolidated balance sheet.

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ACCUMULATED OTHER COMPREHENSIVE LOSS

3 Months Ended

Mar. 31, 2024

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

12. ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, after tax, for the three-months ended March 31, 2024 and 2023 are as follows:

	Accumulated
	Net Gains				Unrealized
	(Losses)		Currency		Gains (Losses)
	on Commodity		Translation		on Available-for-
	Derivatives		Gains (Losses)		Sale Securities		Total
Balance at December 31, 2023	$	4,410	$	(128,989)	$	(758)	$	(125,337)
Other comprehensive income (loss) before reclassifications		(2,131)		(30,695)		223		(32,603)
Net current-period other comprehensive income (loss)		(2,131)		(30,695)		223		(32,603)
Balance at March 31, 2024	$	2,279	$	(159,684)	$	(535)	$	(157,940)

	Accumulated
	Net Gains				Unrealized
	(Losses)		Currency		Gains (Losses)
	on Commodity		Translation		on Available-for-
	Derivatives		Gains (Losses)		Sale Securities		Total
Balance at December 31, 2022	$	—	$	(153,230)	$	(5,843)	$	(159,073)
Other comprehensive income (loss) before reclassifications		—		7,981		3,181		11,162
Net current-period other comprehensive income (loss)		—		7,981		3,181		11,162
Balance at March 31, 2023	$	—	$	(145,249)	$	(2,662)	$	(147,911)

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TREASURY STOCK

3 Months Ended

Mar. 31, 2024

TREASURY STOCK

TREASURY STOCK

13. TREASURY STOCK

On November 2, 2022, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “November 2022 Repurchase Plan”). During the three-months ended March 31, 2024, the Company purchased approximately 1.8 million shares of common stock at an average purchase price of $54.96 per share, for a total amount of approximately $97.2 million (excluding broker commissions), under the November 2022 Repurchase Plan. As of May 7, 2024, $142.4 million remained available for repurchase under the November 2022 Repurchase Plan.

On November 7, 2023, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “November 2023 Repurchase Plan”). During the three-months ended March 31, 2024, no shares were repurchased under the November 2023 Repurchase Plan. As of May 7, 2024, $500.0 million remained available for repurchase under the November 2023 Repurchase Plan.

The aggregate amount of the Company’s outstanding common stock that remains available for repurchase under all previously authorized repurchase plans is $642.4 million as of May 7, 2024.

During the three-months ended March 31, 2024, 0.4 million shares of common stock were purchased from employees in lieu of cash payments for options exercised or withholding taxes due for a total amount of $23.0 million. While such purchases are considered common stock repurchases, they are not counted as purchases against the Company’s authorized share repurchase programs. Such shares are included in common stock in treasury in the accompanying consolidated balance sheet at March 31, 2024.

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STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2024

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

14. STOCK-BASED COMPENSATION

The Company has two stock-based compensation plans under which shares were available for grant at March 31, 2024: (i) the Monster Beverage Corporation 2020 Omnibus Incentive Plan, including the Monster Beverage Corporation Deferred Compensation Plan as a sub-plan thereunder, and (ii) the Monster Beverage Corporation 2017 Compensation Plan for Non-Employee Directors as

Amended and Restated on February 23, 2022, including the Monster Beverage Corporation Deferred Compensation Plan for Non-Employee Directors as a sub-plan thereunder.

The Company recorded $22.5 million and $16.1 million of compensation expense relating to outstanding options, restricted stock units, performance share units and other share-based awards during the three-months ended March 31, 2024 and 2023, respectively.

The tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options and vesting of restricted stock units and performance share units for the three-months ended March 31, 2024 and 2023 was $7.5 million and $25.9 million, respectively.

Stock Options

Under the Company’s stock-based compensation plans, all stock options granted as of March 31, 2024 were granted at prices based on the fair value of the Company’s common stock on the date of grant. The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company uses historical data to determine the exercise behavior, volatility and forfeiture rate of the options.

The following weighted-average assumptions were used to estimate the fair value of options granted during:

	Three-Months Ended March 31,
	2024		2023
Dividend yield	0.0	%	0.0	%
Expected volatility	27.5	%	27.6	%
Risk-free interest rate	4.3	%	3.7	%
Expected term	6.4	years	6.3	years

Expected Volatility: The Company uses historical volatility as it provides a reasonable estimate of the expected volatility. Historical volatility is based on the most recent volatility of the stock price over a period of time equivalent to the expected term of the option.

Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. treasury zero-coupon yield curve in effect at the time of grant for the expected term of the option.

Expected Term: The Company’s expected term represents the weighted-average period that the Company’s stock options are expected to be outstanding. The expected term is based on the expected time to post-vesting exercise of options by employees. The Company uses historical exercise patterns of previously granted options to derive employee behavioral patterns used to forecast expected exercise patterns.

The following table summarizes the Company’s activities with respect to its stock option plans as follows:

				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Shares (in	Price Per		Term (in	Aggregate
Options	thousands)	Share		years)	Intrinsic Value
Outstanding at January 1, 2024	24,983	$	33.64	5.8	$	598,866
Granted 01/01/24 - 03/31/24	4,332	$	60.29
Exercised	(1,457)	$	26.35
Cancelled or forfeited	(14)	$	40.13
Outstanding at March 31, 2024	27,844	$	38.17	6.3	$	592,303
Vested and expected to vest in the future at March 31, 2024	26,628	$	37.55	6.2	$	582,560
Exercisable at March 31, 2024	15,538	$	29.22	4.3	$	467,020

The weighted-average grant-date fair value of options granted during the three-months ended March 31, 2024 and 2023 was $22.69 per share and $18.23 per share, respectively.

The total intrinsic value of options exercised during the three-months ended March 31, 2024 and 2023 was $47.6 million and $131.0 million, respectively.

Cash received from option exercises under all plans for the three-months ended March 31, 2024 and 2023 was $38.4 million and $36.3 million, respectively.

At March 31, 2024, there was $174.7 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 3.6 years.

Restricted Stock Units and Performance Share Units

The cost of stock-based compensation for restricted stock units and performance share units is measured based on the closing fair market value of the Company’s common stock at the date of grant. In the event that the Company has the option and intent to settle a restricted stock unit or performance share unit in cash, the award is classified as a liability and revalued at each balance sheet date.

The following table summarizes the Company’s activities with respect to non-vested restricted stock units and performance share units as follows:

		Weighted
	Number of	Average
	Shares (in	Grant-Date
	thousands)	Fair Value
Non-vested at January 1, 2024	1,964	$	40.95
Granted 01/01/24 - 03/31/241	502	$	57.04
Vested	(821)	$	40.63
Forfeited/cancelled	(1)	$	30.36
Non-vested at March 31, 2024	1,644	$	46.03

¹The grant activity for performance share units is recorded based on the target performance level earning 100% of target performance share units. The actual number of performance share units earned could range from 0% to 200% of target depending on the achievement of pre-established performance goals.

The weighted-average grant-date fair value of restricted stock units and/or performance share units granted during the three-months ended March 31, 2024 and 2023 was $60.27 and $50.83 per share, respectively.

As of March 31, 2024, 1.6 million of restricted stock units and performance share units are expected to vest over their respective terms.

At March 31, 2024, total unrecognized compensation expense relating to non-vested restricted stock units and performance share units was $49.6 million, which is expected to be recognized over a weighted-average period of 1.8 years.

Other Share-Based Awards

The Company has granted other share-based awards to certain employees that are payable in cash. These awards are classified as liabilities and are valued based on the fair value of the award at the grant date and are remeasured at each reporting date until settlement, with compensation expense being recognized in proportion to the completed requisite service period up until date of settlement. At March 31, 2024, other share-based awards outstanding included grants that vest over three years payable in the first quarters of 2025, 2026 and 2027.

At March 31, 2024, there was $0.8 million of total unrecognized compensation expense related to nonvested other share-based awards granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 1.3 years.

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INCOME TAXES

3 Months Ended

Mar. 31, 2024

INCOME TAXES

INCOME TAXES

15. INCOME TAXES

The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the three-months ended March 31, 2024:

	Gross Unrecognized
	Tax Benefits
Balance at December 31, 2023	$	3,109
Additions for tax positions related to the current year		2,900
Additions for tax positions related to the prior years		—
Decreases for tax positions related to the prior years		—
Balance at March 31, 2024	$	6,009

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s condensed consolidated financial statements. As of March 31, 2024, the Company had approximately $0.7 million in accrued interest and penalties related to unrecognized tax benefits. If the Company were to prevail on all uncertain tax positions, the resultant impact on the Company’s effective tax rate would not be significant. It is expected that any change in the amount of unrecognized tax benefits within the next 12 months will not be significant.

The Company is subject to U.S. federal income tax as well as to income tax in multiple state and foreign jurisdictions.

The Company is in various stages of examination with certain states and certain foreign jurisdictions. The Company’s 2020 through 2023 U.S. federal income tax returns are subject to examination by the IRS. The Company’s state income tax returns are subject to examination for the 2019 through 2023 tax years. The United Kingdom and Ireland income tax returns are subject to examination for the 2019 through 2023 tax years.

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EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2024

EARNINGS PER SHARE

EARNINGS PER SHARE

16. EARNINGS PER SHARE

A reconciliation of the weighted-average shares used in the basic and diluted earnings per common share computations is presented below (in thousands):

	Three-Months Ended
	March 31,
	2024	2023
Weighted-average shares outstanding:
Basic	1,041,081	1,044,909
Dilutive	10,201	14,160
Diluted	1,051,282	1,059,069

For the three-months ended March 31, 2024 and 2023, options and awards outstanding totaling 5.0 million shares and 2.6 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

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SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2024

SEGMENT INFORMATION

SEGMENT INFORMATION

17. SEGMENT INFORMATION

The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment, which is primarily comprised of the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment, which is primarily comprised of the various energy drink brands acquired from TCCC in 2015 as well as the Company’s affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment, which is comprised of various craft beers, hard seltzers and FMBs and (iv) Other segment, which is comprised of the AFF Third-Party Products.

The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers/distributors. In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors.

Generally, the Monster Energy® Drinks segment generates higher per case net operating revenues, but lower per case gross profit margin percentages than the Strategic Brands segment.

The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, hard seltzers and FMBs primarily to beer distributors in the United States.

Generally, the Alcohol Brands segment has lower gross profit margin percentages than the Monster Energy® Drinks segment.

Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to “Corporate & Unallocated.” No asset information, other than goodwill and other intangible assets, has been provided in the Company’s reportable segments, as management does not measure or allocate such assets on a segment basis.

The net revenues derived from the Company’s reportable segments and other financial information related thereto for the three-months ended March 31, 2024 and 2023 were as follows:

	Three-Months Ended
	March 31,
	2024		2023
Net sales:
Monster Energy® Drinks1	$	1,729,051	$	1,561,669
Strategic Brands		108,444		86,357
Alcohol Brands		56,070		46,290
Other		5,533		4,614
Corporate and unallocated		—		—
	$	1,899,098	$	1,698,930

	Three-Months Ended
	March 31,
	2024		2023
Operating Income:
Monster Energy® Drinks1	$	628,122	$	560,819
Strategic Brands		62,019		51,771
Alcohol Brands		(6,017)		(6,883)
Other		1,001		(293)
Corporate and unallocated		(143,134)		(120,350)
	$	541,991	$	485,064

	Three-Months Ended
	March 31,
	2024		2023
Income before tax:
Monster Energy® Drinks1	$	629,160	$	561,674
Strategic Brands		62,035		51,788
Alcohol Brands		(6,016)		(6,867)
Other		1,016		(293)
Corporate and unallocated		(108,450)		(108,742)
	$	577,745	$	497,560

(1) Includes $9.9 million for both the three-months ended March 31, 2024 and 2023, related to the recognition of deferred revenue.

	Three-Months Ended
	March 31,
	2024		2023
Depreciation and amortization:
Monster Energy® Drinks	$	12,608	$	8,989
Strategic Brands		229		221
Alcohol Brands		3,738		4,051
Other		40		1,123
Corporate and unallocated		3,860		2,424
	$	20,475	$	16,808

Corporate and unallocated expenses for the three-months ended March 31, 2024 include $98.6 million of payroll costs, of which $22.0 million was attributable to stock-based compensation expenses (see Note 14 “Stock-Based Compensation”), as well as $20.0 million attributable to professional service expenses, including accounting and legal costs, and $24.5 million of other operating expenses.

Corporate and unallocated expenses for the three-months ended March 31, 2023 include $80.3 million of payroll costs, of which $15.7 million was attributable to stock-based compensation expenses (see Note 14 “Stock-Based Compensation”), as well as $22.1 million attributable to professional service expenses, including accounting and legal costs, and $18.0 million of other operating expenses.

Coca-Cola Europacific Partners accounted for approximately 14% and 13% of the Company’s net sales for the three-months ended March 31, 2024 and 2023, respectively.

Coca-Cola Consolidated, Inc. accounted for approximately 10% of the Company’s net sales for both the three-months ended March 31, 2024 and 2023.

Reyes Holdings, LLC accounted for approximately 9% of the Company’s net sales for both the three-months ended March 31, 2024 and 2023.

Net sales to customers outside the United States amounted to $744.1 million and $622.9 million for the three-months ended March 31, 2024 and 2023, respectively. Such sales were approximately 39% and 37% of net sales for the three-months ended March 31, 2024 and 2023, respectively.

Goodwill and other intangible assets for the Company’s reportable segments were as follows at:

	March 31,		December 31,
	2024		2023
Goodwill and other intangible assets:
Monster Energy® Drinks	$	1,668,188	$	1,663,814
Strategic Brands		982,676		982,471
Alcohol Brands		197,839		198,795
Other		—		—
	$	2,848,703	$	2,845,080

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RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2024

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

18. RELATED PARTY TRANSACTIONS

TCCC controls approximately 19.6% of the voting interests of the Company. The TCCC Subsidiaries, the TCCC Related Parties and certain TCCC independent bottlers, purchase and distribute the Company’s products in domestic and certain international markets. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, were $22.5 million and $15.7 million for the three-months ended March 31, 2024 and 2023, respectively, and are included as a reduction to net sales.

TCCC commissions, based on sales to TCCC independent bottlers, were $9.7 million and $8.8 million for the three-months ended March 31, 2024 and 2023, respectively, and are included in operating expenses.

Net sales to the TCCC Subsidiaries for the three-months ended March 31, 2024 and 2023 were $41.7 million and $35.1 million, respectively.

The Company also purchases concentrates from TCCC which are then sold to certain of the Company’s bottlers/distributors. Concentrate purchases from TCCC were $8.0 million and $6.5 million for the three-months ended March 31, 2024 and 2023, respectively.

Certain TCCC Subsidiaries also contract manufacture certain of the Company’s energy drinks. Such contract manufacturing expenses were $9.0 million and $7.4 million for the three-months ended March 31, 2024 and 2023, respectively.

Accounts receivable, accounts payable, accrued promotional allowances and accrued liabilities related to the TCCC Subsidiaries were as follows at:

	March 31,		December 31,
	2024		2023
Accounts receivable, net	$	139,825	$	135,246
Accounts payable	$	(35,923)	$	(68,386)
Accrued promotional allowances	$	(15,260)	$	(13,794)
Accrued liabilities	$	(25,325)	$	(19,745)

One director of the Company through certain trusts, and a family member of one director are the principal owners of a company that provides promotional materials to the Company. Expenses incurred with such company in connection with promotional materials purchased during the three-months ended March 31, 2024 and 2023 were $1.9 million and $1.1 million, respectively.

The Company occasionally charters a private aircraft that is indirectly owned by Mr. Rodney C. Sacks, Co-Chief Executive Officer and Chairman of the Board of Directors. On certain occasions, Mr. Sacks is accompanied by guests and other Company personnel when using such aircraft for business travel. During the three-months ended March 31, 2024 and 2023, the Company incurred no costs in relation to the aircraft.

In December 2018, the Company and a director of the Company entered into a 50-50 partnership that purchased land, and real property thereon, in Kona, Hawaii for the purpose of producing coffee products. In October 2023, the partnership made a special, one-time distribution to each of the partners, reflecting the amount of their initial capital contributions. This partnership meets the definition of a Variable Interest Entity (“VIE”) for which the Company has determined that it is the primary beneficiary. Therefore, the Company consolidates the VIE in the accompanying consolidated financial statements. The aggregate carrying values of the VIE’s assets and liabilities, after elimination of any intercompany transactions and balances, as well as the results of operations for all periods presented, are not material to the Company’s consolidated financial statements.

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SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2024

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

19. SUBSEQUENT EVENTS

On May 1, 2024, the Board of Directors authorized the Company to commence a modified “Dutch auction” tender offer to repurchase up to $3.0 billion of its outstanding shares of common stock. The Company anticipates commencing the tender offer in May 2024. Details of the tender offer, including the offer price, conditions, potential participation by management and other terms, will be set forth in the offering materials to be distributed to shareholders upon commencement of the tender offer.

The Company expects to fund the tender offer with approximately $2.0 billion of cash on hand and approximately $1.0 billion in combined borrowings, consisting of a new revolving credit facility and a new delayed draw term loan facility, each expected to be consummated prior to the completion of the tender offer. The tender offer will be made outside of the Company’s previously authorized repurchase programs and will allow the Company to retain the ability to purchase additional shares through the previously authorized repurchase programs in the future.

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BASIS OF PRESENTATION (Policies)

3 Months Ended

Mar. 31, 2024

BASIS OF PRESENTATION

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU No. 2023-07 are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact ASU No. 2023-07 will have on its consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update primarily require more detailed disclosures related to the rate reconciliation and income taxes paid. The amendments in ASU No. 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact ASU No. 2023-09 will have on its consolidated financial statements.

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REVENUE RECOGNITION (Tables)

3 Months Ended

Mar. 31, 2024

REVENUE RECOGNITION

Schedule of disaggregation of revenue by geographical markets

	Three-Months Ended March 31, 2024
							Latin
					Asia Pacific		America
	U.S. and				(including		and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	1,094,846	$	352,229	$	122,018	$	159,958	$	1,729,051
Strategic Brands		49,642		43,337		9,197		6,268		108,444
Alcohol Brands		56,070		—		—		—		56,070
Other		5,533		—		—		—		5,533
Total Net Sales	$	1,206,091	$	395,566	$	131,215	$	166,226	$	1,899,098

	Three-Months Ended March 31, 2023
							Latin
					Asia Pacific		America
	U.S. and				(including		and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	1,021,328	$	277,111	$	121,994	$	141,235	$	1,561,668
Strategic Brands		43,043		30,951		8,983		3,381		86,358
Alcohol Brands		46,290		—		—		—		46,290
Other		4,614		—		—		—		4,614
Total Net Sales	$	1,115,275	$	308,062	$	130,977	$	144,616	$	1,698,930

¹Europe, Middle East and Africa (“EMEA”)

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LEASES (Tables)

3 Months Ended

Mar. 31, 2024

LEASES

Schedule of lease cost

	Three-Months Ended March 31,
	2024		2023
Operating lease cost	$	3,802	$	2,467
Short-term lease cost		2,670		979
Variable lease cost		213		215
Finance leases:
Amortization of right-of-use assets		595		123
Interest on lease liabilities		91		14
Finance lease cost		686		137
Total lease cost	$	7,371	$	3,798

Schedule of supplemental cash flow information related to leases

	Three-Months Ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	3,607	$	2,391
Operating cash outflows from finance leases		91		14
Financing cash outflows from finance leases		2,897		598
Right-of-use assets obtained in exchange for lease obligations:
Finance leases		747		2,227
Operating leases		1,091		313

Schedule of ROU assets for operating and finance leases

		March 31,		December 31,
	Balance Sheet Location	2024		2023
Operating leases:
Right-of-use assets	Other assets	$	56,421	$	58,845
Current lease liabilities	Accrued liabilities	$	11,122	$	11,088
Noncurrent lease liabilities	Other liabilities		46,474		48,459
Total operating lease liabilities		$	57,596	$	59,547
Finance leases:
Right-of-use assets	Property and equipment, net	$	10,091	$	11,147
Current lease liabilities	Accrued liabilities	$	4,297	$	6,449
Noncurrent lease liabilities	Other liabilities		14		19
Total finance lease liabilities		$	4,311	$	6,468

Schedule of weighted-average remaining lease terms and weighted-average discount rates

	March 31, 2024		December 31, 2023
Weighted-average remaining lease term in years:
Operating leases	6.2		6.3
Finance leases	0.5		0.7
Weighted-average discount rate:
Operating leases	4.7	%	4.7	%
Finance leases	6.3	%	6.3	%

Schedule of outlines maturities of the Company's lease liabilities

	Undiscounted Future Lease Payments
	Operating Leases		Finance Leases
2024 (from April 1, 2024 to December 31, 2024)	$	10,213	$	4,275
2025		11,942		118
2026		9,824		2
2027		9,242		—
2028		7,709		—
2029 and thereafter		17,820		—
Total lease payments		66,750		4,395
Less imputed interest		(9,154)		(84)
Total	$	57,596	$	4,311

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INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2024

INVESTMENTS

Summary of investments in available-for-sale

									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
March 31, 2024	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	157,074	$	11	$	—	$	157,085	$	—	$	—
Certificates of deposit		24,831		—		—		24,831		—		—
U.S. government agency securities		101,893		16		54		101,855		54		—
U.S. treasuries		530,697		23		390		530,330		390		—
Corporate bonds		170,198		32		130		170,100		130		—
Long-term:
Corporate bonds		8,205		—		43		8,162		43		—
Total	$	992,898	$	82	$	617	$	992,363	$	617	$	—

									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
December 31, 2023	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	163,775	$	—	$	1	$	163,774	$	1	$	—
Certificates of deposit		15,590		—		—		15,590		—		—
Municipal securities		361		—		—		361		—		—
U.S. government agency securities		116,524		90		66		116,548		66		—
U.S. treasuries		412,936		205		1,084		412,057		1,084		—
Corporate bonds		247,340		89		154		247,275		154		—
Long-term:
U.S. government agency securities		23,485		51		5		23,531		5		—
U.S. treasuries		35,896		79		8		35,967		8		—
Corporate bonds		16,903		32		2		16,933		2		—
Total	$	1,032,810	$	546	$	1,320	$	1,032,036	$	1,320	$	—

Summary of the underlying contractual maturities of investments

	March 31, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	157,074	$	157,085	$	163,775	$	163,774
Municipal securities		—		—		361		361
U.S. government agency securities		101,893		101,855		116,524		116,548
Certificates of deposit		24,831		24,831		15,590		15,590
U.S. treasuries		530,697		530,330		412,936		412,057
Corporate bonds		170,198		170,100		247,340		247,275
Due 1 - 10 years:
U.S. treasuries		—		—		35,896		35,967
U.S. government agency securities		—		—		23,485		23,531
Corporate bonds		8,205		8,162		16,903		16,933
Total	$	992,898	$	992,363	$	1,032,810	$	1,032,036

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FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2024

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

Schedule of financial assets and liabilities recorded at fair value on a recurring basis

March 31, 2024	Level 1		Level 2		Level 3		Total
Cash	$	973,260	$	—	$	—	$	973,260
Money market funds		1,026,552		—		—		1,026,552
Certificates of deposit		—		74,208		—		74,208
Commercial paper		—		193,959		—		193,959
Corporate bonds		—		205,924		—		205,924
U.S. government agency securities		—		146,214		—		146,214
U.S. treasuries		—		948,770		—		948,770
Foreign currency derivatives		—		(591)		—		(591)
Commodity derivatives		—		2,279		—		2,279
Total	$	1,999,812	$	1,570,763	$	—	$	3,570,575
Amounts included in:
Cash and cash equivalents	$	1,999,812	$	576,712	$	—	$	2,576,524
Short-term investments		—		984,201		—		984,201
Accounts receivable, net		—		2,981		—		2,981
Other assets		—		332		—		332
Investments		—		8,162		—		8,162
Accrued liabilities		—		(1,625)		—		(1,625)
Total	$	1,999,812	$	1,570,763	$	—	$	3,570,575

December 31, 2023	Level 1		Level 2		Level 3		Total
Cash	$	1,105,701	$	—	$	—	$	1,105,701
Money market funds		960,873		—		—		960,873
Certificates of deposit		—		33,824		—		33,824
Commercial paper		—		163,774		—		163,774
Corporate bonds		—		264,208		—		264,208
Municipal securities		—		361		—		361
U.S. government agency securities		—		159,585		—		159,585
U.S. treasuries		—		641,385		—		641,385
Foreign currency derivatives		—		(1,083)		—		(1,083)
Commodity derivatives		—		4,410		—		4,410
Total	$	2,066,574	$	1,266,464	$	—	$	3,333,038
Amounts included in:
Cash and cash equivalents	$	2,066,574	$	231,101	$	—	$	2,297,675
Short-term investments		—		955,605		—		955,605
Accounts receivable, net		—		4,618		—		4,618
Other assets		—		316		—		316
Investments		—		76,431		—		76,431
Accrued liabilities		—		(1,607)		—		(1,607)
Total	$	2,066,574	$	1,266,464	$	—	$	3,333,038

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2024

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Schedule of fair value of derivative instruments

	Fair value
	March 31,		December 31,
Derivatives designated as hedging instruments	2024		2023		Balance Sheet location
Assets:
Commodity contracts	$	2,379	$	4,480	Accounts receivable, net
Commodity contracts	$	332	$	316	Other assets
Liabilities:
Commodity contracts	$	(432)	$	(386)	Accrued liabilities

	Fair value
	March 31,		December 31,
Derivatives not designated as hedging instruments	2024		2023		Balance Sheet location
Assets:
Foreign currency exchange contracts	$	602	$	138	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts	$	(1,193)	$	(1,221)	Accrued liabilities

Schedule of changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income ("OCI"), AOCI and earnings

Three-months ended March 31, 2024
Derivatives				Gain (loss)
designated as	Gain (loss) recognized		Location of gain (loss)	reclassified from
hedging instruments	in AOCI		recognized in income	AOCI into income
Commodity contracts	$	2,279	Cost of sales	$	(966)

Schedule of net gains (losses) on derivative instruments in the consolidated statements of income

		Gain (loss)
		recognized in income on
		derivatives
		Three-months ended
Derivatives not designated as	Location of gain (loss)	March 31,		March 31,
hedging instruments	recognized in income on derivatives	2024		2023
Foreign currency exchange contracts	Interest and other income, net	$	5,343	$	(7,852)

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INVENTORIES (Tables)

3 Months Ended

Mar. 31, 2024

INVENTORIES

Schedule of inventories

	March 31,		December 31,
	2024		2023
Raw materials	$	285,966	$	330,021
Work in process		1,601		1,403
Finished goods		652,063		639,982
	$	939,630	$	971,406

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PROPERTY AND EQUIPMENT, NET (Tables)

3 Months Ended

Mar. 31, 2024

PROPERTY AND EQUIPMENT, NET

Schedule of property and equipment

	March 31,		December 31,
	2024		2023
Land	$	153,340	$	152,253
Leasehold improvements		38,159		37,946
Furniture and fixtures		11,401		11,422
Office and computer equipment		26,421		25,560
Computer software		5,053		5,344
Equipment		449,321		426,466
Buildings		212,359		211,951
Vehicles		69,937		69,527
Assets under construction		234,627		211,562
		1,200,618		1,152,031
Less: accumulated depreciation and amortization		(277,328)		(261,235)
	$	923,290	$	890,796

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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2024

GOODWILL AND OTHER INTANGIBLE ASSETS

Schedule of goodwill

	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Balance at December 31, 2023	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941
Acquisitions		—		—		—		—		—
Balance at March 31, 2024	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941

	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Balance at December 31, 2022	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941
Acquisitions		—		—		—		—		—
Balance at March 31, 2023	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941

Schedule of intangible assets

	March 31,		December 31,
	2024		2023
Amortizing intangibles	$	144,378	$	144,582
Accumulated amortization		(75,982)		(74,699)
		68,396		69,883
Non-amortizing intangibles		1,362,366		1,357,256
	$	1,430,762	$	1,427,139

Schedule of future estimated amortization expense related to amortizing intangibles

2024 (from April 1, 2024 to December 31, 2024)	$	4,461
2025		5,947
2026		5,947
2027		5,946
2028		5,945
2029 and thereafter		40,150
	$	68,396

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

3 Months Ended

Mar. 31, 2024

ACCUMULATED OTHER COMPREHENSIVE LOSS

Schedule of components of accumulated other comprehensive loss

	Accumulated
	Net Gains				Unrealized
	(Losses)		Currency		Gains (Losses)
	on Commodity		Translation		on Available-for-
	Derivatives		Gains (Losses)		Sale Securities		Total
Balance at December 31, 2023	$	4,410	$	(128,989)	$	(758)	$	(125,337)
Other comprehensive income (loss) before reclassifications		(2,131)		(30,695)		223		(32,603)
Net current-period other comprehensive income (loss)		(2,131)		(30,695)		223		(32,603)
Balance at March 31, 2024	$	2,279	$	(159,684)	$	(535)	$	(157,940)

	Accumulated
	Net Gains				Unrealized
	(Losses)		Currency		Gains (Losses)
	on Commodity		Translation		on Available-for-
	Derivatives		Gains (Losses)		Sale Securities		Total
Balance at December 31, 2022	$	—	$	(153,230)	$	(5,843)	$	(159,073)
Other comprehensive income (loss) before reclassifications		—		7,981		3,181		11,162
Net current-period other comprehensive income (loss)		—		7,981		3,181		11,162
Balance at March 31, 2023	$	—	$	(145,249)	$	(2,662)	$	(147,911)

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STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2024

STOCK-BASED COMPENSATION

Schedule of weighted-average assumptions used to estimate the fair value of options granted

	Three-Months Ended March 31,
	2024		2023
Dividend yield	0.0	%	0.0	%
Expected volatility	27.5	%	27.6	%
Risk-free interest rate	4.3	%	3.7	%
Expected term	6.4	years	6.3	years

Schedule of activities with respect to its stock option plans

				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Shares (in	Price Per		Term (in	Aggregate
Options	thousands)	Share		years)	Intrinsic Value
Outstanding at January 1, 2024	24,983	$	33.64	5.8	$	598,866
Granted 01/01/24 - 03/31/24	4,332	$	60.29
Exercised	(1,457)	$	26.35
Cancelled or forfeited	(14)	$	40.13
Outstanding at March 31, 2024	27,844	$	38.17	6.3	$	592,303
Vested and expected to vest in the future at March 31, 2024	26,628	$	37.55	6.2	$	582,560
Exercisable at March 31, 2024	15,538	$	29.22	4.3	$	467,020

Schedule of activities with respect to non-vested restricted stock units and performance share units

		Weighted
	Number of	Average
	Shares (in	Grant-Date
	thousands)	Fair Value
Non-vested at January 1, 2024	1,964	$	40.95
Granted 01/01/24 - 03/31/241	502	$	57.04
Vested	(821)	$	40.63
Forfeited/cancelled	(1)	$	30.36
Non-vested at March 31, 2024	1,644	$	46.03

¹The grant activity for performance share units is recorded based on the target performance level earning 100% of target performance share units. The actual number of performance share units earned could range from 0% to 200% of target depending on the achievement of pre-established performance goals.

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INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2024

INCOME TAXES

Schedule of roll-forward of the total gross unrecognized tax benefits, not including interest and penalties

	Gross Unrecognized
	Tax Benefits
Balance at December 31, 2023	$	3,109
Additions for tax positions related to the current year		2,900
Additions for tax positions related to the prior years		—
Decreases for tax positions related to the prior years		—
Balance at March 31, 2024	$	6,009

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EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2024

EARNINGS PER SHARE

Schedule of reconciliation of the weighted average shares used in the basic and diluted earnings per common share

A reconciliation of the weighted-average shares used in the basic and diluted earnings per common share computations is presented below (in thousands):

	Three-Months Ended
	March 31,
	2024	2023
Weighted-average shares outstanding:
Basic	1,041,081	1,044,909
Dilutive	10,201	14,160
Diluted	1,051,282	1,059,069

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SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2024

SEGMENT INFORMATION

Schedule of net revenues and other financial information by segment

	Three-Months Ended
	March 31,
	2024		2023
Net sales:
Monster Energy® Drinks1	$	1,729,051	$	1,561,669
Strategic Brands		108,444		86,357
Alcohol Brands		56,070		46,290
Other		5,533		4,614
Corporate and unallocated		—		—
	$	1,899,098	$	1,698,930

	Three-Months Ended
	March 31,
	2024		2023
Operating Income:
Monster Energy® Drinks1	$	628,122	$	560,819
Strategic Brands		62,019		51,771
Alcohol Brands		(6,017)		(6,883)
Other		1,001		(293)
Corporate and unallocated		(143,134)		(120,350)
	$	541,991	$	485,064

	Three-Months Ended
	March 31,
	2024		2023
Income before tax:
Monster Energy® Drinks1	$	629,160	$	561,674
Strategic Brands		62,035		51,788
Alcohol Brands		(6,016)		(6,867)
Other		1,016		(293)
Corporate and unallocated		(108,450)		(108,742)
	$	577,745	$	497,560

(1) Includes $9.9 million for both the three-months ended March 31, 2024 and 2023, related to the recognition of deferred revenue.

	Three-Months Ended
	March 31,
	2024		2023
Depreciation and amortization:
Monster Energy® Drinks	$	12,608	$	8,989
Strategic Brands		229		221
Alcohol Brands		3,738		4,051
Other		40		1,123
Corporate and unallocated		3,860		2,424
	$	20,475	$	16,808

Schedule of goodwill and other intangible assets for the reportable segments

	March 31,		December 31,
	2024		2023
Goodwill and other intangible assets:
Monster Energy® Drinks	$	1,668,188	$	1,663,814
Strategic Brands		982,676		982,471
Alcohol Brands		197,839		198,795
Other		—		—
	$	2,848,703	$	2,845,080

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RELATED PARTY TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2024

RELATED PARTY TRANSACTIONS

Schedule of related party transactions

	March 31,		December 31,
	2024		2023
Accounts receivable, net	$	139,825	$	135,246
Accounts payable	$	(35,923)	$	(68,386)
Accrued promotional allowances	$	(15,260)	$	(13,794)
Accrued liabilities	$	(25,325)	$	(19,745)

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REVENUE RECOGNITION - (Details)	3 Months Ended
	Mar. 31, 2024 segment
REVENUE RECOGNITION
Number of operating segments	4
Number of reportable segments	4
Distribution agreement, revenue recognition period	20 years

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REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
REVENUE RECOGNITION
Total net sales	$ 1,899,098	$ 1,698,930
U.S. and Canada
REVENUE RECOGNITION
Total net sales	1,206,091	1,115,275
EMEA
REVENUE RECOGNITION
Total net sales	395,566	308,062
Asia Pacific (including Oceania)
REVENUE RECOGNITION
Total net sales	131,215	130,977
Latin America and Caribbean
REVENUE RECOGNITION
Total net sales	166,226	144,616
Monster Energy Drinks
REVENUE RECOGNITION
Total net sales	1,729,051	1,561,668
Monster Energy Drinks | U.S. and Canada
REVENUE RECOGNITION
Total net sales	1,094,846	1,021,328
Monster Energy Drinks | EMEA
REVENUE RECOGNITION
Total net sales	352,229	277,111
Monster Energy Drinks | Asia Pacific (including Oceania)
REVENUE RECOGNITION
Total net sales	122,018	121,994
Monster Energy Drinks | Latin America and Caribbean
REVENUE RECOGNITION
Total net sales	159,958	141,235
Strategic Brands
REVENUE RECOGNITION
Total net sales	108,444	86,358
Strategic Brands | U.S. and Canada
REVENUE RECOGNITION
Total net sales	49,642	43,043
Strategic Brands | EMEA
REVENUE RECOGNITION
Total net sales	43,337	30,951
Strategic Brands | Asia Pacific (including Oceania)
REVENUE RECOGNITION
Total net sales	9,197	8,983
Strategic Brands | Latin America and Caribbean
REVENUE RECOGNITION
Total net sales	6,268	3,381
Alcohol Brands
REVENUE RECOGNITION
Total net sales	56,070	46,290
Alcohol Brands | U.S. and Canada
REVENUE RECOGNITION
Total net sales	56,070	46,290
Alcohol Brands | EMEA
REVENUE RECOGNITION
Total net sales	0	0
Alcohol Brands | Asia Pacific (including Oceania)
REVENUE RECOGNITION
Total net sales	0	0
Alcohol Brands | Latin America and Caribbean
REVENUE RECOGNITION
Total net sales	0	0
Other
REVENUE RECOGNITION
Total net sales	5,533	4,614
Other | U.S. and Canada
REVENUE RECOGNITION
Total net sales	5,533	4,614
Other | EMEA
REVENUE RECOGNITION
Total net sales	0	0
Other | Asia Pacific (including Oceania)
REVENUE RECOGNITION
Total net sales	0	0
Other | Latin America and Caribbean
REVENUE RECOGNITION
Total net sales	$ 0	$ 0

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REVENUE RECOGNITION - Contract Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Contract Liabilities
Deferred revenue	$ 242.5		$ 246.2
Deferred revenue recognized in net sales	$ 9.9	$ 9.9

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LEASES - Lease Terms (Details)	3 Months Ended
	Mar. 31, 2024
LEASES
Operating leases, options to extend	true
Finance leases, options to extend	true
Operating leases, options to terminate	true
Finance leases, options to terminate	true
Minimum
LEASES
Operating leases, lease term (in years)	1 year
Finance leases, lease term (in years)	1 year
Maximum
LEASES
Operating leases, lease term (in years)	10 years
Finance leases, lease term (in years)	11 years
Operating leases, renewal lease term (in years)	5 years
Finance leases, renewal lease term (in years)	5 years
Operating leases, termination period (in years)	1 year
Finance leases, termination period (in years)	1 year

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LEASES - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
LEASES
Operating lease cost	$ 3,802	$ 2,467
Short-term lease cost	2,670	979
Variable lease cost	213	215
Finance leases:
Amortization of right-of-use assets	595	123
Interest on lease liabilities	91	14
Finance lease cost	686	137
Total lease cost	$ 7,371	$ 3,798

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LEASES - Supplemental cash flow information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$ 3,607	$ 2,391
Operating cash outflows from finance leases	91	14
Financing cash outflows from finance leases	2,897	598
Right-of-use assets obtained in exchange for lease obligations:
Finance leases	747	2,227
Operating leases	$ 1,091	$ 313

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LEASES - Supplemental balance sheet information (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
LEASES
Right-of-use assets	$ 56,421	$ 58,845
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets, Noncurrent	Other Assets, Noncurrent
Current lease liabilities	$ 11,122	$ 11,088
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued Liabilities, Current	Accrued Liabilities, Current
Noncurrent lease liabilities	$ 46,474	$ 48,459
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Total operating lease liabilities	$ 57,596	$ 59,547
Finance leases:
Right-of-use assets	$ 10,091	$ 11,147
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, Plant and Equipment, Net	Property, Plant and Equipment, Net
Current lease liabilities	$ 4,297	$ 6,449
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities, Current	Accrued Liabilities, Current
Noncurrent lease liabilities	$ 14	$ 19
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Total finance lease liabilities	$ 4,311	$ 6,468

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LEASES - Weighted-average remaining lease term and weighted-average discount rate (Details)	Mar. 31, 2024	Dec. 31, 2023
LEASES
Weighted-average remaining lease term (years), Operating leases	6 years 2 months 12 days	6 years 3 months 18 days
Weighted-average remaining lease term (years), Finance leases	6 months	8 months 12 days
Weighted-average discount rate, Operating leases	4.70%	4.70%
Weighted-average discount rate, Finance leases	6.30%	6.30%

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LEASES - Undiscounted future lease payments for operating and finance leases (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Operating Leases
2024 (from April 1, 2024 to December 31, 2024)	$ 10,213
2025	11,942
2026	9,824
2027	9,242
2028	7,709
2029 and thereafter	17,820
Total lease payments	66,750
Less imputed interest	(9,154)
Total operating lease liabilities	57,596	$ 59,547
Finance Leases
2024 (from April 1, 2024 to December 31, 2024)	4,275
2025	118
2026	2
2028	0
2029 and thereafter	0
Total lease payments	4,395
Less imputed interest	(84)
Total finance lease liabilities	$ 4,311	$ 6,468

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INVESTMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Available-for-sale
Amortized Cost	$ 992,898	$ 1,032,810
Gross Unrealized Holding Gains	82	546
Gross Unrealized Holding Losses	617	1,320
Fair Value	992,363	1,032,036
Continuous Unrealized Loss Position less than 12 Months	617	1,320
Continuous Unrealized Loss Position greater than 12 Months	0	0
Short-term | Commercial paper
Available-for-sale
Amortized Cost	157,074	163,775
Gross Unrealized Holding Gains	11	0
Gross Unrealized Holding Losses	0	1
Fair Value	157,085	163,774
Continuous Unrealized Loss Position less than 12 Months	0	1
Continuous Unrealized Loss Position greater than 12 Months	0	0
Short-term | Certificates of deposit
Available-for-sale
Amortized Cost	24,831	15,590
Gross Unrealized Holding Gains	0	0
Gross Unrealized Holding Losses	0	0
Fair Value	24,831	15,590
Continuous Unrealized Loss Position less than 12 Months	0	0
Continuous Unrealized Loss Position greater than 12 Months	0	0
Short-term | Municipal securities
Available-for-sale
Amortized Cost		361
Gross Unrealized Holding Gains		0
Gross Unrealized Holding Losses		0
Fair Value		361
Continuous Unrealized Loss Position less than 12 Months		0
Continuous Unrealized Loss Position greater than 12 Months		0
Short-term | U.S. government agency securities
Available-for-sale
Amortized Cost	101,893	116,524
Gross Unrealized Holding Gains	16	90
Gross Unrealized Holding Losses	54	66
Fair Value	101,855	116,548
Continuous Unrealized Loss Position less than 12 Months	54	66
Continuous Unrealized Loss Position greater than 12 Months	0	0
Short-term | U.S. treasuries
Available-for-sale
Amortized Cost	530,697	412,936
Gross Unrealized Holding Gains	23	205
Gross Unrealized Holding Losses	390	1,084
Fair Value	530,330	412,057
Continuous Unrealized Loss Position less than 12 Months	390	1,084
Continuous Unrealized Loss Position greater than 12 Months	0	0
Short-term | Corporate bonds
Available-for-sale
Amortized Cost	170,198	247,340
Gross Unrealized Holding Gains	32	89
Gross Unrealized Holding Losses	130	154
Fair Value	170,100	247,275
Continuous Unrealized Loss Position less than 12 Months	130	154
Continuous Unrealized Loss Position greater than 12 Months	0	0
Long-term | U.S. government agency securities
Available-for-sale
Amortized Cost		23,485
Gross Unrealized Holding Gains		51
Gross Unrealized Holding Losses		5
Fair Value		23,531
Continuous Unrealized Loss Position less than 12 Months		5
Continuous Unrealized Loss Position greater than 12 Months		0
Long-term | U.S. treasuries
Available-for-sale
Amortized Cost		35,896
Gross Unrealized Holding Gains		79
Gross Unrealized Holding Losses		8
Fair Value		35,967
Continuous Unrealized Loss Position less than 12 Months		8
Continuous Unrealized Loss Position greater than 12 Months		0
Long-term | Corporate bonds
Available-for-sale
Amortized Cost	8,205	16,903
Gross Unrealized Holding Gains	0	32
Gross Unrealized Holding Losses	43	2
Fair Value	8,162	16,933
Continuous Unrealized Loss Position less than 12 Months	43	2
Continuous Unrealized Loss Position greater than 12 Months	$ 0	$ 0

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INVESTMENTS - Maturity Period (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
INVESTMENTS
Amortized Cost	$ 992,898	$ 1,032,810
Fair Value	992,363	1,032,036
Commercial paper | Less than 1 year
INVESTMENTS
Amortized Cost	157,074	163,775
Fair Value	157,085	163,774
Municipal securities | Less than 1 year
INVESTMENTS
Amortized Cost	0	361
Fair Value	0	361
U.S. government agency securities | Less than 1 year
INVESTMENTS
Amortized Cost	101,893	116,524
Fair Value	101,855	116,548
U.S. government agency securities | Due 1 - 10 years
INVESTMENTS
Amortized Cost	0	23,485
Fair Value	0	23,531
Certificates of deposit | Less than 1 year
INVESTMENTS
Amortized Cost	24,831	15,590
Fair Value	24,831	15,590
U.S. treasuries | Less than 1 year
INVESTMENTS
Amortized Cost	530,697	412,936
Fair Value	530,330	412,057
U.S. treasuries | Due 1 - 10 years
INVESTMENTS
Amortized Cost	0	35,896
Fair Value	0	35,967
Corporate bonds | Less than 1 year
INVESTMENTS
Amortized Cost	170,198	247,340
Fair Value	170,100	247,275
Corporate bonds | Due 1 - 10 years
INVESTMENTS
Amortized Cost	8,205	16,903
Fair Value	$ 8,162	$ 16,933

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FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Cash and cash equivalents	$ 2,576,524	$ 2,297,675
Short-term investments	984,201	955,605
Investments	8,162	76,431
Asset transfers between Level 1 and Level 2 measurements	0	0
Total fair value
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Cash	973,260	1,105,701
Assets measured at fair value	3,570,575	3,333,038
Fair value liabilities	(591)	(1,083)
Cash and cash equivalents	2,576,524	2,297,675
Short-term investments	984,201	955,605
Accounts receivable, net	2,981	4,618
Other assets	332	316
Investments	8,162	76,431
Accrued liabilities	(1,625)	(1,607)
Total fair value | Money market funds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	1,026,552	960,873
Total fair value | Certificates of deposit
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	74,208	33,824
Total fair value | Commercial paper
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	193,959	163,774
Total fair value | Corporate bonds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	205,924	264,208
Total fair value | Municipal securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		361
Total fair value | U.S. government agency securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	146,214	159,585
Total fair value | U.S. treasuries
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	948,770	641,385
Total fair value | Commodity derivatives
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Fair value liabilities	2,279	4,410
Level 1
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Cash	973,260	1,105,701
Assets measured at fair value	1,999,812	2,066,574
Fair value liabilities	0	0
Cash and cash equivalents	1,999,812	2,066,574
Short-term investments	0	0
Accounts receivable, net	0	0
Other assets	0
Investments	0	0
Accrued liabilities	0	0
Level 1 | Money market funds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	1,026,552	960,873
Level 1 | Certificates of deposit
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	0	0
Level 1 | Commercial paper
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	0	0
Level 1 | Corporate bonds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	0	0
Level 1 | Municipal securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		0
Level 1 | U.S. government agency securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	0	0
Level 1 | U.S. treasuries
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	0	0
Level 2
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Cash	0	0
Assets measured at fair value	1,570,763	1,266,464
Fair value liabilities	(591)	(1,083)
Cash and cash equivalents	576,712	231,101
Short-term investments	984,201	955,605
Accounts receivable, net	2,981	4,618
Other assets	332	316
Investments	8,162	76,431
Accrued liabilities	(1,625)	(1,607)
Level 2 | Money market funds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	0	0
Level 2 | Certificates of deposit
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	74,208	33,824
Level 2 | Commercial paper
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	193,959	163,774
Level 2 | Corporate bonds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	205,924	264,208
Level 2 | Municipal securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		361
Level 2 | U.S. government agency securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	146,214	159,585
Level 2 | U.S. treasuries
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	948,770	641,385
Level 2 | Commodity derivatives
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Fair value liabilities	2,279	4,410
Level 3
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Cash	0	0
Assets measured at fair value	0	0
Fair value liabilities	0	0
Cash and cash equivalents	0	0
Short-term investments	0	0
Accounts receivable, net	0	0
Other assets	0
Investments	0	0
Accrued liabilities	0	0
Level 3 | Money market funds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	0	0
Level 3 | Certificates of deposit
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	0	0
Level 3 | Commercial paper
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	0	0
Level 3 | Corporate bonds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	0	0
Level 3 | Municipal securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		0
Level 3 | U.S. government agency securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	0	0
Level 3 | U.S. treasuries
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	$ 0	$ 0

XML

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Derivatives designated as hedging instruments | Accounts receivables, net | Commodity contracts
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Fair value assets	$ 2,379	$ 4,480
Derivatives designated as hedging instruments | Other assets | Commodity contracts
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Fair value assets	332	316
Derivatives designated as hedging instruments | Accrued liabilities | Commodity contracts
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Fair value liabilities	(432)	(386)
Derivatives not designated as hedging instruments | Accounts receivables, net | Foreign currency exchange contracts
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Fair value assets	602	138
Derivatives not designated as hedging instruments | Accrued liabilities | Foreign currency exchange contracts
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Fair value liabilities	$ (1,193)	$ (1,221)

XML

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Hedging designation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Gain (loss) recognized in AOCI	$ (2,131)	$ 0
Derivatives designated as hedging instruments | Commodity derivatives | Cash Flow Hedging
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Notional value	126,100		$ 98,300
Gain (loss) recognized in AOCI	$ 2,279
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]	Cost of Goods and Services Sold
Gain (loss) reclassified from AOCI into income	$ (966)
Amount to be reclassified	$ 1,900

XML

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Non hedging designation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Collateral amount	$ 600
Foreign currency exchange contracts | Maximum
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Term of derivative instrument	1 month
Derivatives not designated as hedging instruments | Foreign currency exchange contracts
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Notional value	$ 230,500		$ 282,700
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)
Amount of loss recognized in income on derivatives	$ 5,343	$ (7,852)

XML

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
INVENTORIES
Raw materials	$ 285,966	$ 330,021
Work in process	1,601	1,403
Finished goods	652,063	639,982
Inventories	$ 939,630	$ 971,406

XML

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	$ 1,200,618		$ 1,152,031
Less: accumulated depreciation and amortization	(277,328)		(261,235)
Property and equipment, net	923,290		890,796
Total depreciation and amortization expense	19,200	$ 14,800
Land
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	153,340		152,253
Leasehold improvements
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	38,159		37,946
Furniture and fixtures
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	11,401		11,422
Office and computer equipment
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	26,421		25,560
Computer software
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	5,053		5,344
Equipment
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	449,321		426,466
Buildings
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	212,359		211,951
Vehicles
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	69,937		69,527
Assets under construction
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	$ 234,627		$ 211,562

XML

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill, beginning balance	$ 1,417,941	$ 1,417,941
Acquisitions	0	0
Goodwill, ending balance	1,417,941	1,417,941
Monster Energy Drinks
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill, beginning balance	693,644	693,644
Acquisitions	0	0
Goodwill, ending balance	693,644	693,644
Strategic Brands
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill, beginning balance	637,999	637,999
Acquisitions	0	0
Goodwill, ending balance	637,999	637,999
Alcohol Brands
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill, beginning balance	86,298	86,298
Acquisitions	0	0
Goodwill, ending balance	86,298	86,298
Other
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill, beginning balance	0	0
Acquisitions	0	0
Goodwill, ending balance	$ 0	$ 0

XML

GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
GOODWILL AND OTHER INTANGIBLE ASSETS
Amortizing intangibles	$ 144,378		$ 144,582
Accumulated amortization	(75,982)		(74,699)
Amortizing intangibles, net	68,396		69,883
Non-amortizing intangibles	1,362,366		1,357,256
Intangibles, net	1,430,762		$ 1,427,139
Amortization expense	$ 1,300	$ 2,000
Minimum
GOODWILL AND OTHER INTANGIBLE ASSETS
Useful life of intangible assets	10 years
Maximum
GOODWILL AND OTHER INTANGIBLE ASSETS
Useful life of intangible assets	15 years

XML

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization expense (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Future estimated amortization expense related to amortizing intangibles
2024 (from April 1, 2024 to December 31, 2024)	$ 4,461
2025	5,947
2026	5,947
2027	5,946
2028	5,945
2029 and thereafter	40,150
Amortizing intangibles, net	$ 68,396	$ 69,883

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DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
DISTRIBUTION AGREEMENTS
Distribution agreement (in years)	20 years
Revenue recognized	$ 9.9	$ 9.9

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COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
COMMITMENTS AND CONTINGENCIES
Aggregate contractual obligations	$ 451.1
Loss contingencies	0.3	$ 0.3
HSBC Bank (China) Company Limited | Line of credit
COMMITMENTS AND CONTINGENCIES
Maximum borrowing capacity	$ 15.0
Interest rate (as a percent)	5.50%
Amount outstanding	$ 0.0
Raw material items
COMMITMENTS AND CONTINGENCIES
Purchase commitments	$ 345.5
Obligation term ( in years)	1 year

XML

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	$ (125,337)	$ (159,073)
Other comprehensive income (loss) before reclassifications	(32,603)	11,162
Net current-period other comprehensive income (loss)	(32,603)	11,162
Balance at the end of the period	(157,940)	(147,911)
Accumulated Net Gains (Losses) on Commodity Derivatives
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	4,410	0
Other comprehensive income (loss) before reclassifications	(2,131)	0
Net current-period other comprehensive income (loss)	(2,131)	0
Balance at the end of the period	2,279	0
Currency Translation Gains (Losses)
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	(128,989)	(153,230)
Other comprehensive income (loss) before reclassifications	(30,695)	7,981
Net current-period other comprehensive income (loss)	(30,695)	7,981
Balance at the end of the period	(159,684)	(145,249)
Unrealized Gains (Losses) on Available-for-Sale Securities
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	(758)	(5,843)
Other comprehensive income (loss) before reclassifications	223	3,181
Net current-period other comprehensive income (loss)	223	3,181
Balance at the end of the period	$ (535)	$ (2,662)

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TREASURY STOCK (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	May 07, 2024	Nov. 07, 2023	Nov. 02, 2022
TREASURY STOCK
Number of shares repurchased of common stock from employees in lieu of cash or withholding taxes due	0.4
Cash payment for repurchase of common stock from employees in lieu of cash or withholding taxes due	$ 23.0
Subsequent event
TREASURY STOCK
Share repurchase program, authorized remaining amount		$ 642.4
November 2022 Repurchase Plan
TREASURY STOCK
Common stock repurchased (in shares)	1.8
Repurchase price of stock	$ 97.2
Share repurchase program, authorized amount				$ 500.0
Average purchase price (in dollars per share)	$ 54.96
November 2022 Repurchase Plan | Subsequent event
TREASURY STOCK
Share repurchase program, authorized remaining amount		142.4
November 2023 Repurchase Plan
TREASURY STOCK
Common stock repurchased (in shares)	0.0
Share repurchase program, authorized amount			$ 500.0
November 2023 Repurchase Plan | Subsequent event
TREASURY STOCK
Share repurchase program, authorized remaining amount		$ 500.0

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STOCK-BASED COMPENSATION (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) plan	Mar. 31, 2023 USD ($)
STOCK-BASED COMPENSATION
Stock-based compensation plans | plan	2
Compensation expense on share-based plans	$ 22.5	$ 16.1
Excess tax benefit realized for tax deductions from non-qualified stock option exercises and disqualifying dispositions of incentive stock options	$ 7.5	$ 25.9

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STOCK-BASED COMPENSATION - Fair Value Assumptions (Details) - Employee Stock Option	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Weighted-average assumptions used to estimate the fair value of options granted
Dividend yield (as a percent)	0.00%	0.00%
Expected volatility (as a percent)	27.50%	27.60%
Risk-free interest rate (as a percent)	4.30%	3.70%
Expected term	6 years 4 months 24 days	6 years 3 months 18 days

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STOCK-BASED COMPENSATION - Stock Option Activity (Details) - Employee Stock Option - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Stock options, Number of Shares
Balance at the beginning of the period (in shares)	24,983
Granted (in shares)	4,332
Exercised (in shares)	(1,457)
Cancelled or forfeited (in shares)	(14)
Balance at the end of the period (in shares)	27,844	24,983
Vested and expected to vest in the future at the end of the period (in shares)	26,628
Exercisable at the end of the period (in shares)	15,538
Stock options, Weighted-Average Exercise Price Per Share
Balance at the beginning of the period (in dollars per share)	$ 33.64
Granted (in dollars per share)	60.29
Exercised (in dollars per share)	26.35
Cancelled or forfeited (in dollars per share)	40.13
Balance at the end of the period (in dollars per share)	38.17	$ 33.64
Vested and expected to vest in the future at the end of the period (in dollars per share)	37.55
Exercisable at the end of the period (in dollars per share)	$ 29.22
Weighted-Average Remaining Contractual Term (in years)
Weighted-Average Remaining Contractual Terms (in years)	6 years 3 months 18 days	5 years 9 months 18 days
Vested and expected to vest in the future at the end of the period	6 years 2 months 12 days
Exercisable at the end of the period	4 years 3 months 18 days
Aggregate Intrinsic Value
Balance at the beginning of the period	$ 598,866
Balance at the end of the period	592,303	$ 598,866
Vested and expected to vest in the future at the end of the period	582,560
Exercisable at the end of the period	$ 467,020

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STOCK-BASED COMPENSATION - Equity Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Employee Stock Option
STOCK-BASED COMPENSATION
Weighted-average grant-date fair value of options granted (in dollars per share)	$ 22.69	$ 18.23
Total intrinsic value of options exercised	$ 47.6	$ 131.0
Cash received from option exercises	$ 38.4	$ 36.3
Stock units expected to vest (in shares)	26,628
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 174.7
Cost expected to be recognized over a weighted-average period	3 years 7 months 6 days
Restricted Stock Units, and Performance Share Units
STOCK-BASED COMPENSATION
Stock units expected to vest (in shares)	1,600
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 49.6
Cost expected to be recognized over a weighted-average period	1 year 9 months 18 days
Number of Shares
Non-vested at the beginning of the period (in shares)	1,964
Granted (in shares)	502
Vested (in shares)	(821)
Forfeited/cancelled (in shares)	(1)
Non-vested at the end of the period (in shares)	1,644
Weighted Average Grant-Date Fair Value
Non-vested at the beginning of the period (in dollars per share)	$ 40.95
Granted (in dollars per share)	57.04
Vested (in dollars per share)	40.63
Forfeited/cancelled (in dollars per share)	30.36
Non-vested at the end of the period (in dollars per share)	46.03
Restricted Stock Units, and/or Performance Share Units
STOCK-BASED COMPENSATION
Weighted-average grant-date fair value of options granted (in dollars per share)	$ 60.27	$ 50.83
Performance Share Units
STOCK-BASED COMPENSATION
Percentage of target performance	100.00%
Performance Share Units | Minimum
STOCK-BASED COMPENSATION
Percentage of target performance	0.00%
Performance Share Units | Maximum
STOCK-BASED COMPENSATION
Percentage of target performance	200.00%
Other Share-Based Awards
STOCK-BASED COMPENSATION
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 0.8
Cost expected to be recognized over a weighted-average period	1 year 3 months 18 days

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INCOME TAXES - Unrecognized Tax Benefit Rollforward (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
INCOME TAXES
Balance at the beginning of the period	$ 3,109
Additions for tax positions related to the current year	2,900
Additions for tax positions related to the prior year	0
Decreases for tax positions related to prior years	0
Balance at the end of the period	6,009
Accrued interest and penalties related to unrecognized tax benefits	$ 700

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EARNINGS PER SHARE (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Weighted-average shares outstanding:
Basic	1,041,081	1,044,909
Dilutive	10,201	14,160
Diluted	1,051,282	1,059,069
Totaling options and awards outstanding (in shares)	5,000	2,600

XML

SEGMENT INFORMATION - Net Revenues (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($)
SEGMENT INFORMATION
Number of reportable segments | segment	4
Number of operating segments | segment	4
Net Sales	$ 1,899,098	$ 1,698,930
Operating Income	541,991	485,064
Income before tax	577,745	497,560
Depreciation and amortization	20,475	16,808
Recognition of deferred revenue	9,900	9,900
Corporate and unallocated
SEGMENT INFORMATION
Net Sales	0	0
Operating Income	(143,134)	(120,350)
Income before tax	(108,450)	(108,742)
Depreciation and amortization	3,860	2,424
Monster Energy Drinks
SEGMENT INFORMATION
Net Sales	1,729,051	1,561,668
Monster Energy Drinks | Operating segment
SEGMENT INFORMATION
Net Sales	1,729,051	1,561,669
Operating Income	628,122	560,819
Income before tax	629,160	561,674
Depreciation and amortization	12,608	8,989
Recognition of deferred revenue	9,900	9,900
Strategic Brands
SEGMENT INFORMATION
Net Sales	108,444	86,358
Strategic Brands | Operating segment
SEGMENT INFORMATION
Net Sales	108,444	86,357
Operating Income	62,019	51,771
Income before tax	62,035	51,788
Depreciation and amortization	229	221
Alcohol Brands
SEGMENT INFORMATION
Net Sales	56,070	46,290
Alcohol Brands | Operating segment
SEGMENT INFORMATION
Net Sales	56,070	46,290
Operating Income	(6,017)	(6,883)
Income before tax	(6,016)	(6,867)
Depreciation and amortization	3,738	4,051
Other
SEGMENT INFORMATION
Net Sales	5,533	4,614
Other | Operating segment
SEGMENT INFORMATION
Net Sales	5,533	4,614
Operating Income	1,001	(293)
Income before tax	1,016	(293)
Depreciation and amortization	$ 40	$ 1,123

XML

SEGMENT INFORMATION - Expenses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
SEGMENT INFORMATION
Stock-based compensation expense	$ 22.5	$ 16.1
Corporate and unallocated
SEGMENT INFORMATION
Payroll costs	98.6	80.3
Stock-based compensation expense	22.0	15.7
Professional service expenses	20.0	22.1
Other operating expenses	$ 24.5	$ 18.0

XML

SEGMENT INFORMATION - Concentration Risk (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
SEGMENT INFORMATION
Net Sales	$ 1,899,098	$ 1,698,930
Sales | Outside United States
SEGMENT INFORMATION
Net Sales	$ 744,100	$ 622,900
Sales | Customer concentration | Outside United States
SEGMENT INFORMATION
Percentage of net sales	39.00%	37.00%
Coca-Cola Europacific Partners | Sales | Customer concentration
SEGMENT INFORMATION
Percentage of net sales	14.00%	13.00%
Coca-Cola Consolidated, Inc | Sales | Customer concentration
SEGMENT INFORMATION
Percentage of net sales	10.00%
Reyes Holdings, LLC | Sales | Customer concentration
SEGMENT INFORMATION
Percentage of net sales	9.00%

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SEGMENT INFORMATION - Goodwill and other intangible assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
SEGMENT INFORMATION
Goodwill and other intangible assets	$ 2,848,703	$ 2,845,080
Monster Energy Drinks | Operating segment
SEGMENT INFORMATION
Goodwill and other intangible assets	1,668,188	1,663,814
Strategic Brands | Operating segment
SEGMENT INFORMATION
Goodwill and other intangible assets	982,676	982,471
Alcohol Brands | Operating segment
SEGMENT INFORMATION
Goodwill and other intangible assets	$ 197,839	$ 198,795

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RELATED PARTY TRANSACTIONS (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) director	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
RELATED PARTY TRANSACTIONS
Net Sales	$ 1,899,098	$ 1,698,930
Expenses incurred in connection with materials or services provided by a related party	485,138	412,785
Monster Energy Drinks
RELATED PARTY TRANSACTIONS
Net Sales	1,729,051	1,561,668
Related Party | Coca Cola Company
RELATED PARTY TRANSACTIONS
Net Sales	41,700	35,100
Purchases from related party	$ 8,000	6,500
Related Party | Coca Cola Company | Voting Interests
RELATED PARTY TRANSACTIONS
Related Party Ownership Interest (as a percent)	19.60%
Related Party | TCCC Subsidiaries and TCCC Related parties
RELATED PARTY TRANSACTIONS
Commission expenses	$ 22,500	15,700
Related Party | TCCC Subsidiaries and TCCC Related parties | Monster Energy Drinks
RELATED PARTY TRANSACTIONS
Contract manufacturing expenses	9,000	7,400
Related Party | TCCC Related Parties and TCCC Independent Bottlers | Operating expense
RELATED PARTY TRANSACTIONS
Commission expenses	9,700	8,800
Related Party | TCCC Subsidiaries
RELATED PARTY TRANSACTIONS
Accounts receivable, net	139,825		$ 135,246
Accounts payable	(35,923)		(68,386)
Accrued promotional allowances	(15,260)		(13,794)
Accrued liabilities	$ (25,325)		$ (19,745)
Principal Owners
RELATED PARTY TRANSACTIONS
Number of directors | director	1
Expenses incurred in connection with materials or services provided by a related party	$ 1,900	$ 1,100

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SUBSEQUENT EVENTS (Details) - Subsequent event - Dutch auction tender offer $ in Billions	May 01, 2024 USD ($)
Maximum
SUBSEQUENT EVENTS
Repurchase price of stock	$ 3.0
Forecast
SUBSEQUENT EVENTS
Cash on hand	2.0
Combined borrowings	$ 1.0

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Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false